Zero Hedge: IMF Warns Countries May Cut Dollar Reserves In Response To US Sanctions Against Russia
Did the IMF just parrot one of Russian President Vladimir Putin's favorite criticisms of Western sanctions?
During an interview with Foreign Policy, the IMF's first deputy managing director, Gita Gopinath, warned that Western sanctions on Russia, and more specifically, the confiscation of dollar- and euro-denominated reserves held by the Russian Central Bank, could backfire by making other foreign central banks more reluctant to hold such a large amount of their own foreign reserves in dollars and euros.
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WNU Editor: Weaponizing the US dollar and Euro will have consequences. On that I have no doubt about it.This IMF official is just stating the obvious.
In order to sell, you have to have a buyer.
ReplyDeleteDump US dollar.
ReplyDelete^ What infocyde said.
ReplyDeleteBack during the crisis of 2011, people wondered why the dollar did not go lower. The explanation was that not the US was doing thongs right (I mean come-on Obama!), bit there simply no other place to go. The same still holds.
China was around back then and clearly economically powerful.
At the same time people were skittish on the US because of QE1, QE2, QE3, Twist and Qternity. But Euro had problems because of Greece, Spain, Portugal and Italy had budget problems.
People still can put money in the EU zone, but they have a little gas problem. The Russians can shut off the taps at any time.
Which leaves Russia and China. Are American, Europeans and other G7 members going to put their money there?