Banknotes: US dollars and euros. Archival photoMOSCOW, May 10. The anti-Russian sanctions have made many countries reflect on their financial vulnerability to the US, prompting them to look for alternatives to the US dollar, says British economist Howard Davies in Toyo Keizai. about whether they will be cut off from the dollar-based financial system if Western restrictions are imposed on them, the economist notes. «Saudi and Chinese politicians have long been concerned about vulnerability to US financial sanctions,» he said.The dollar sword has blunted, writes DWN In recent years, China has taken steps to reduce this risk by creating its own cross-border interbank payments system (CIPS), which offers cross-border payments in yuan to its participants. Even with the rapid growth of CIPS participants, it currently does not pose a significant threat to the global hegemony of Western payment systems, but the development of the Chinese digital yuan could have a more serious impact, Davis points out. countries. At the same time, the report of the American Hoover Institution argues that if China succeeds in facilitating the yuanization of world trade flows with the help of digital currencies, then the ability of the United States to effectively use financial sanctions will decrease, he emphasizes. that its share of world foreign exchange reserves has declined from 71% in 2000 to just under 60% today.” There were few signs of the end of dollar dominance, but that trend has changed. ways to minimize the impact of similar measures taken against them. Serious and long-term consequences for the global financial system are quite possible,» Davis concludes. A number of Western countries have imposed new sanctions against Russia because of the situation in Ukraine. President Vladimir Putin has said that the policy of containing and weakening Russia is a long-term strategy for the West, and sanctions have dealt a severe blow to the entire global economy. According to him, the main goal of the West is to worsen the lives of millions of people. He added that current events draw a line under the global dominance of the West in both politics and economics. According to him, Russia is not going to isolate itself, it cannot be strictly isolated in the modern world.Read the full text of the article on the InoSMI website >>
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