This 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.
The irony is that the desire to keep dollars outside America only reinforced the greenback’s muscle.
In the wake of the Russian invasion of the Ukraine the new outbreak of financial conflict through sanctions has raised the question of whether the dollar’s dominance has been tarnished, and whether a multipolar currency system will rise instead, with the Chinese yuan playing a bigger role.
Read the full article on The Economist HERE.
