Will dollar dominance give way to a multipolar system of currencies?
Recent trends suggest the yuan will not gain much
IN THE WAKE of an invasion that drew international condemnation, Russian officials panicked that their dollar-denominated assets within America’s reach were at risk of abrupt confiscation, sending them scrambling for alternatives. The invasion in question did not take place in 2022, or even 2014, but in 1956, when Soviet tanks rolled into Hungary. The event is often regarded as one of the factors that helped kick-start the eurodollar market—a network of dollar-denominated deposits held outside America and usually beyond the direct reach of its banking regulators.
This article appeared in the Finance & economics section of the print edition under the headline “The once and future king”
Finance & economics April 2nd 2022
- America’s gas frackers limber up to save Europe
- What can Russia do to sell its unwanted oil?
- India grapples with the new realities of the global oil market
- Can the Fed pull off an “immaculate disinflation”?
- Under unprecedented sanctions, how is the Russian economy faring?
- Surging food prices take a toll on poor economies
- The White House wants to close a tax loophole used by the ultra-rich
- Will dollar dominance give way to a multipolar system of currencies?
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