How sanctions are changing the global system of international settlements

How sanctions are changing the global system of international settlements

The global settlement system has entered a phase where the previous logic of a single center no longer seems obvious. Sanctions, asset freezes, restrictions on correspondent accounts, and restricted access to dollar infrastructure ceased to be rare exceptions to become a permanent factor that businesses and governments must take into account when choosing a currency, bank, payment route, and jurisdiction. Trust in the dollar infrastructure has become conditional, payment routes have become longer, and the cost of capital has risen. Financier Kirill Kuchinsky, PhD in economics, discusses this in more detail.