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Decoupling from the western financial system and having a higher level of resilience from sanctions. You never know if the US will decide tomorrow you're not be
by elzbardico 4y ago
Decoupling from the western financial system and having a higher level of resilience from sanctions. You never know if the US will decide tomorrow you're not behaving as expected under the internal rules-based order.
- robertlagrant 4y agoWhy would the US be able to stop them buying oil using their dollars?
- twoclicksnorth 4y agoal transactions in usd are settled in US. even if trade happens in other places. hence they have the ability.
- giaour 4y ago> al transactions in usd are settled in US. Do you mean this in some metaphysical sense? Because you can exchange USD for gods or services outside the US without the US government getting involved.
- Ekaros 4y agoThere is essentially loans of USD that happen on balance sheets that is paper between institutions outside of USA. So such trading and settlement is possible. But if there is block of actually getting this money in real dollars, that is rather pointless even more monopoly money.
- lottin 4y agoWhat do you mean real dollars? Dollar deposits in bank accounts outside the US are as real as dollars deposited in US banks.
- ilammy 4y agoOh sweet child, try transferring your “dollars” out of your country first – especially into US – before you claim they are real.
- lottin 4y agoThis is absolute nonsense. International trade is predominantly conducted in US dollars, therefore it's patently obvious that it must possible to transfer dollars abroad.
- bell-cot 4y agoVery Roughly: Countries don't buy oil (or anything else) with a suitcase or few stuffed with $100 bills.* Instead, they have a really big bank move US dollars through the international banking system electronically. Any really big bank that wants to keep its US-issued "Allowed to Handle US Dollars Electronically" License has got to follow a bunch of US-made rules. Which rules doubtless permit the US to make & enforce a very long blacklist, of various countries / organizations / people who the US doesn't want banks to work with. (That said, I see no reason to suspect that Ghana has any interest in "Decoupling from the western financial system", as elzbardico put it. Though obviously the subjects of oil, gold, dollars, etc. are pushing a whole lotta people's emotional buttons in this item.) *Yes, there are exceptions - usually involving sanctions-busting by folks who don't care about drawing hostile attention from the US.
- lottin 4y ago> US-issued "Allowed to Handle US Dollars Electronically" License Source?
- samus 4y agoThe permission to use SWIFT, which has been recently revoked for Russia. And contagious sanctions designed to make it difficult to trade with non-sanctioned companies and countries.
- lottin 4y agoNonsense. SWIFT is a Belgian corp. that provides inter-bank payments. It has nothing to do with the US or the US dollar. There is no US-issued license required to use dollars internationally. This is stupid.
- from 4y agobell-cot is simplifying but is basically describing correspondent banking. Banks in other countries need correspondent banking relationships with US banks in order to work with dollars. Banks in countries on the OFAC list can't get these relationships. Even banks in "high risk" areas like the Caribbean are getting their correspondent relationships cut off because US banks are worried about getting fined if the banks they correspond with doesn't have strict AML procedures. See https://www.atlanticcouncil.org/wp-content/uploads/2022/02/Financial-De-Risking-in-the-Caribbean_US-Implications.pdf https://www.atlanticcouncil.org/wp-content/uploads/2022/02/F...
- elzbardico 4y agoBecause any international bank that has business in the US or does business with other banks who have business in the US would avoid dealing with a sanctioned entity as they could become "impure" too, in sort of a Leviticusian sense of the world.