https://sputnikglobe.com/20230623/imf-executive-director-for-russia-fragmentation-of-world-economy-irreversible-1111432295.html
IMF Executive Director for Russia: Fragmentation of World Economy 'Irreversible'
IMF Executive Director for Russia: Fragmentation of World Economy 'Irreversible'
Sputnik International
The collective West's blatant use of finance, trade, the dollar and the euro as weapons makes the fragmentation of the world economy irreversible, IMF Executive Director for Russia Aleksei Mozhin told Sputnik.
2023-06-23T21:26+0000
2023-06-23T21:26+0000
2023-06-24T00:48+0000
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"The blatant use by the West of international trade, finance, the dollar, and the euro as a weapon makes the fragmentation of the world economy not only inevitable but also irreversible," Mozhin said. As an example of the irreversibility of the world economy's fragmentation, Mozhin pointed to the consequences of the West's sanctions against Russia, which led to the temporary disappearance of certain categories of goods in the country. "Such as, for example, the civil aviation industry, where we have more than a century of engineering tradition. By the way, the so-called process of deglobalization began long before the events in Ukraine and the imposition of draconian sanctions against us."The world suddenly realized that globalization is forcing all countries to follow the path of specialization to the detriment of economic diversification, pushing countries rich in natural resources to specialize in their extraction and export, Mozhin noted. Therefore, deglobalization or fragmentation will continue, the official said, adding that the policy of containment toward Russia is a deliberate attempt to hinder its economic development.US Prompted Global Search for Alternatives to DollarMozhin further relayed it was the US that triggered the situation in which the world began to search for alternatives to the US dollar.The IMF executive director for Russia noted that other national currencies are increasingly used in the world, primarily the Chinese yuan."We see that the Iranians, Brazilians, and Saudis are already switching to trade in yuan not only with China but also with third countries," Mozhin said.The United States is already worried about the fate of the dollar as a world reserve currency given that the process is developing quite quickly, Mozhin said.Mozhin pointed out that the main factor for the dollar to serve as a reserve currency and main means of payment and savings was the lack of alternatives."Of course, this is not the only factor. American military power also plays a role in protecting the currency. The size of the American economy, the financial banking sector are also factors, but still, the main thing is simply the absence of an alternative," he said.According to Mozhin, the dollar is a national currency that is issued for the purposes of the national interests, economic and financial obligations of one country. "Therefore, it is wrong that it was so widely used in the world," he added.
https://sputnikglobe.com/20230529/trade-in-national-currencies-to-have-healing-effect-on-global-economy--lavrov-1110773930.html
https://sputnikglobe.com/20230502/imf-chief-shift-away-from-dollar-occurring-but-no-alternative-to-us-currency-exists-1110018435.html
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IMF Executive Director for Russia: Fragmentation of World Economy 'Irreversible'
21:26 GMT 23.06.2023 (Updated: 00:48 GMT 24.06.2023) WASHINGTON (Sputnik) - The collective West's blatant use of finance, trade, the dollar, and the euro as weapons makes the fragmentation of the world economy not only inevitable but also irreversible, IMF Executive Director for Russia Aleksei Mozhin told Sputnik.
"The blatant use by the West of international trade, finance, the dollar, and the euro as a weapon makes the fragmentation of the world economy not only inevitable but also irreversible," Mozhin said.
As an example of the irreversibility of the world economy's fragmentation, Mozhin pointed to the consequences of the West's sanctions against Russia, which led to the temporary disappearance of certain categories of goods in the country.
"We have learned this lesson, we will never allow ourselves to be so dependent on imports again, at least in strategic sectors of the economy," he said.
"Such as, for example, the civil aviation industry, where we have more than a century of engineering tradition. By the way, the so-called process of deglobalization began long before the events in Ukraine and the imposition of draconian sanctions against us."
The world suddenly realized that globalization is forcing all countries to follow the path of specialization to the detriment of economic diversification, pushing countries rich in natural resources to specialize in their extraction and export, Mozhin noted.
Therefore, deglobalization or fragmentation will continue, the official said, adding that the policy of containment toward Russia is a deliberate attempt to hinder its economic development.
US Prompted Global Search for Alternatives to Dollar
Mozhin further relayed it was the US that triggered the situation in which the world began to search for alternatives to the US dollar.
"The Americans themselves have created a situation where the search for alternatives to the dollar inevitably started," Mozhin said. "And now we see how it is all happening."
The IMF executive director for Russia noted that other national currencies are increasingly used in the world, primarily the Chinese yuan.
"We see that the Iranians, Brazilians, and Saudis are already switching to trade in yuan not only with China but also with third countries," Mozhin said.
The United States is already worried about the fate of the dollar as a world reserve currency given that the process is developing quite quickly, Mozhin said.
"It is clear that this does not happen overnight, but the process has already begun," he said.
Mozhin pointed out that the main factor for the dollar to serve as a reserve currency and main means of payment and savings was the lack of alternatives.
"Of course, this is not the only factor. American military power also plays a role in protecting the currency. The size of the American economy, the financial banking sector are also factors, but still, the main thing is simply the absence of an alternative," he said.
According to Mozhin, the dollar is a national currency that is issued for the purposes of the national interests, economic and financial obligations of one country. "Therefore, it is wrong that it was so widely used in the world," he added.
