Bloomberg
There are numerous complications. One potentially overlooked:
- The U.S. $Dollar is often used as safe haven for overseas money. A problem for Putin, U.S. dollar assets traced to Putin / Russia are now subject to being frozen. Fine. In short term it may seem expedient.
But long term?
If foreign wealth doesn't want to risk such "temporary" blocked access to their own money, they may be smart enough to park such sums elsewhere in the future.
That would not merely be a shift of wealth, away from the U.S.
It would also be a loss of coercive power.
The short term seems reliably predictable. But what of the longer term?
Dollar Surges Versus Almost Everything on Ukraine Conflict Risks
(Bloomberg) -- The dollar is rising against virtually every peer as fallout from the deepening conflict in Ukraine supercharges demand for the world’s reserve currency. Most Read from BloombergEU Discusses Sanctions on Tycoons; Euro Slides: Ukraine UpdateU.S., Europe Cut Some Russian Banks From SWIFT:There are numerous complications. One potentially overlooked:
- The U.S. $Dollar is often used as safe haven for overseas money. A problem for Putin, U.S. dollar assets traced to Putin / Russia are now subject to being frozen. Fine. In short term it may seem expedient.
But long term?
If foreign wealth doesn't want to risk such "temporary" blocked access to their own money, they may be smart enough to park such sums elsewhere in the future.
That would not merely be a shift of wealth, away from the U.S.
It would also be a loss of coercive power.
The short term seems reliably predictable. But what of the longer term?