Acapulco. The global financial system has begun a process of fragmentation that will lead to more competition between currencies and for companies to analyze countries that match their goals for investment, the former Bank of England governor warned Mark Carney.
By participating in 85 Bank AgreementHe explained that payment systems are already facing pressures from rapid technological changes and the shift in global political power, to which is now added the conflict between Russia and Ukraine.
This is because, given the impossibility of carrying out a direct military attack, financial and economic sanctions were used to punish the military action of Vladimir Putin’s government.
Now the geopolitical and geostrategic risks presented themselves with a multiplier effect by financing the transition to nuclear energy. We will have more fragmentation in the different ways of payments, and more competition between currencies.” It is to explain.
This is because the United States and its allies who support Ukraine have prevented it 300 billion of dollars from the gold and foreign exchange reserves of the Russian Central Bank as punishment for their military actions.
These economic sanctions have real power because of the central position that the US dollar enjoys.” Carney stressed.
Which leaves Russia few options, for example, it can take different assets, such as commodities or other reserve currencies, but it is betting that these will not find themselves compatible with the United States at any time in the future.
Not forgetting that the nation faces other types of sanctions such as banning many of its banks, from the system of the Association of Global Interbank Connection and Financial Communications.
This encouraged the early development of parallel propulsion systems, rather than Swift“, The former central governor added.
In addition to fines, you also find that many companies are taking very important steps to be able to stripping in Russia.
Written by: Ora Hernandez and Carla Pons
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