Why is America the only country whose economic sanctions are causing harm to countries? Why don't we hear, for example, of Russian or Chinese economic sanctions?
The answer is
First: The system of financial transfers between countries is American, which all banks and countries deal with, and it is called “swift.” This system has developed since the seventies, so that no country can trade the cost and there is no consensus on a financial system for international transfers, so closing it on a country will directly affect its economic growth and currency reserves. foreign.
swift |
Second: pressure through the International Monetary Fund in the credit rating of countries, which weakens their economic situation, investment opportunities, and then foreign exchange reserves.
International Monetary Fund |
Third: control of global markets through its major companies, which invest heavily in major markets such as China
Fourth: Relative control over the trade of some basic materials such as wheat, as you can deprive countries of exporting to the punished country, otherwise those countries will receive the same penalty.
Fifth: The dollar is one of the currencies agreed upon in circulation between countries, and the dollar is used to support the local currency. But if the country is deprived of trading in dollars, it will be deprived of foreign exchange reserves, and since Europe is an ally of America, the same will happen with the euro.
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