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US Sanctions Reinforce the Dollar's Dominance / Michael P. Dooley, David Folkerts-Landau, Peter M. Garber.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Dooley, Michael P.
Contributor:
National Bureau of Economic Research.
Folkerts-Landau, David.
Garber, Peter M.
Series:
Working Paper Series (National Bureau of Economic Research) no. w29943.
NBER working paper series no. w29943
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2022.
Summary:
Recent sanctions on the use of Russia's international reserve assets seem likely to reduce the appeal of US dollar reserves as a "shock absorber" for international payments. But international reserves are also a means to reassure foreign investors that problematic countries will not confiscate their investments. The "collateral" motive for holding dollar reserves has been enhanced by the demonstration that the United States is willing and able to sanction misbehavior. Geopolitically risky countries now more than ever need to reassure foreign investors that their investments are safe from expropriation. We conclude that recent events will strengthen the role of the dollar as the key international reserve currency.
Notes:
Print version record
April 2022.

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