Following Russia’s invasion of Ukraine on February 24, the U.S dollar has been “weaponized” to put pressure on Russia via numerous financial sanctions, analysts told Kitco News.
At the same time, they are confiscating other central banks’ money using the SWIFT system because their foreign policies are not aligned with the U.S.,” Frank Holmes, CEO and CIO of U.S.
Russia’s state gas giant Gazprom stated that it would only resume supplies once both countries pay for the gas in Russian rubles.
Poland and Bulgaria said they refused to pay in rubles, with the EU arguing that it violates sanctions imposed on Moscow and is a breach of contract.
Back in March, Russia also signaled that it could consider accepting Bitcoin for its oil and gas exports after the chair of Russia’s Duma Committee on energy said that the country would be more flexible when it comes to payment options with “friendly” countries.
You’ve seen questions about globalization and this series of events around Ukraine certainly has the possibility of leading to a more fragmented political situation and economic situation,” Powell said during a panel discussion at the IMF and the World Bank Spring Meetings.
was tired of abiding by policies instituted by unelected bureaucrats in Brussels, and it’s only expanded since then,” he said.
The success of the sanctions and the trouble Russia is having in Ukraine is making everyone think twice before taking any action that may upset the U.S.,” said Alex Mashinsky, CEO of Celsius Network.
Also, the hawkish stance of the Federal Reserve is boosting the case for the U.S.
dollar losing its status as the world’s reserve currency in the long-term; I am, however, not bullish on USD in relation to emerging markets and commodity-based currencies in the near term,” Chopra told Kitco News.
Yet, on the other hand, the widely used financial sanctions against Russia via limiting access to the U.S.
People have an intrinsic need to feel safe—financially, in this case—and if they can’t get it with a savings account or government bond, they’ll surely get it with gold or its digital cousin,” he pointed out.
“Every central bank and commercial bank has to re-evaluate who they have reserves with and what denomination they use.
“As an asset class, bitcoin behaves like a growth or technology stock and tends to do very well in a risk-on environment.
According to the IMF, the dollar foreign exchange reserves have already been on the decline since 2000, dropping from 71% to 60%.