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IMF Issues Stark Warning About The U.S. Dollar

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U.S. sanctions placed on Russia have led to Russian President Vladimir Putin firing back.

As retribution for the U.S. sanctions against Russia, Putin has signed an order which will force ‘hostile’ nations to pay for Russian energy using the Russian Ruble, as opposed to the standard U.S. Dollar.

Aside from endangering the petrodollar system, and driving down demand for the Dollar, this move has caused the Ruble to retrace much of its prewar value.

Despite European nations publicly denying his request, and Germany even halting construction of the Nordstream 2 pipeline when the conflict first broke out, it now appears as if many of those powers are quietly buying Rubles to pay for Russian energy.

Putin recently aired his immediate policy change for the world to see:

According to The Epoch Times, the IMF warns:

The sanctions may result in a more fragmented international monetary system, warned Gopinath.

She had previously said that the sanctions against Russia would not foreshadow the demise of the dollar as the world’s reserve currency and that the Ukraine crisis would slow growth, but not cause a global recession.

 

The Wall Street Journal reports that the Russian Ruble has reclaimed the value that it lost when sanctions were first announced:

Western sanctions capped the Russian central bank’s ability to sell its reserves denominated in dollars and euros to support the ruble’s value.

But carve-outs in the sanctions allow Europe to continue buying Russian energy and ensured dollars and euros continue to flow.

Russia ordered its exporters, such as oil and gas companies, to sell 80% of their foreign-currency revenues and buy rubles, helping the currency appreciate.

 

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