Western sanctions against Russia could undermine the dollar and change the global financial system

The British "Financial Times" newspaper reported that sanctions against Russia and the freezing of part of its cash reserves in Western banks, may undermine the dollar and change the global financial system.

The newspaper pointed out that "as a result of Washington's actions, an alternative economic system will emerge in the world."

"Despite the rhetoric of the United States and its allies, Russia's actions in Ukraine have not been condemned by the entire world, but only by a Western-led coalition, and this may have important consequences for the future of international finance," she added.

She said, "Attention should be paid to China's long-term plans to make the yuan a more important currency in global settlements, the implementation of which may accelerate against the background of the reaction of Western countries to the events in Ukraine. As part of this strategy, China can speed up the progress of its banking system (CIPS). Used in more than 100 countries, it is seen as an alternative to SWIFT.

And the newspaper pointed out that, “Noting the de-dollarization of the global economy, it may turn into a kind of financial analogue, such as the one that occurred during the tripartite aggression against Egypt in 1956, and became a symbol of the decline of the British,” referring to trade between Russia and India, which “is studying the possibility of establishing a mechanism for settlements.” in national currencies.

Follow our latest local and sports news and the latest political and economic developments via Google news