Multiple Countries

New Global Monetary System Will Evolve, as Sanctions and Current Conventions Worsen Supply Shortages

Macroeconomics
345 Views, 07 May 2022 18:31
EXECUTIVE SUMMARY
  • Seizure of Russia's external assets is prompting countries to think about protecting economic security via alternative payment mechanisms for commodities. The dollar's role as the leading reserve currency remains intact. 
  • Foreign exchange reserve management could change following seizure of Russian assets. Politicisation of SWIFT could impact flows into banking systems due to fears of potential seizures without legal recourse.
  • High transaction costs for foreign trade never featured prominently during the globalisation era.  New lockdowns in China and Russian sanctions accentuate supply shortages and inflation under current global monetary arrangements.
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DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investm... 

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