Emily
Editor, Senior Moderator
https://www.cnbc.com/2022/03/22/cou...rsify-away-from-the-us-dollar-think-tank.html
Washington’s ‘trigger-happy’ sanctions may push countries away from the dollar, says think tank
Published Mon, Mar 21 2022 10:25 PM EDT
Abigail Ng
Key Points
"Central banks are beginning to ask questions," said Gal Luft of the Washington-based think tank, adding that they are wondering if reliance on the dollar and "putting all their eggs in one basket" is a smart idea.
"The United States has extended itself, has been extremely trigger-happy when it comes to the use of sanctions and other economic punishments," he said.
The White House did not respond to a CNBC request for comment.
Luft said the U.S. took "unacceptable and unheard of steps" in recent weeks, such as effectively freezing Russia's central bank reserves and disconnecting Russia from the interbank messaging system, SWIFT.
"That has a cumulative effect and as a result, we see the dollar playing less and less of a role and portfolios of central banks," Luft said...
Washington’s ‘trigger-happy’ sanctions may push countries away from the dollar, says think tank
Published Mon, Mar 21 2022 10:25 PM EDT
Abigail Ng
Key Points
- Central banks are starting to question whether reliance on the U.S. dollar is a good idea, said Gal Luft of the Institute for the Analysis of Global Security.
- "The United States has extended itself, has been extremely trigger-happy when it comes to the use of sanctions and other economic punishments," he said.
- Separately, Luft said the energy market is facing "a heart attack on top of a heart attack" with Covid and the Russia-Ukraine war.
"Central banks are beginning to ask questions," said Gal Luft of the Washington-based think tank, adding that they are wondering if reliance on the dollar and "putting all their eggs in one basket" is a smart idea.
"The United States has extended itself, has been extremely trigger-happy when it comes to the use of sanctions and other economic punishments," he said.
The White House did not respond to a CNBC request for comment.
Luft said the U.S. took "unacceptable and unheard of steps" in recent weeks, such as effectively freezing Russia's central bank reserves and disconnecting Russia from the interbank messaging system, SWIFT.
He said one in 10 countries in the world is under some form of U.S. sanctions."That has a cumulative effect and as a result, we see the dollar playing less and less of a role and portfolios of central banks," Luft said...