Article by PIMCO

The Big Freeze: Sanctioning Russia Raises Questions on Other Currencies


Captura de Pantalla 2022-05-18 a la(s) 23

Autor: Marcelo Soba

  1. PIMCO鈥檚 view is that reserves will shift to currencies of countries deemed as sanctions-remote
  2. The firm鈥檚 experts believe the U.S. dollar will come out at least as strong as before, while the picture for the renminbi is more clouded
  3. Larger central banks may be more reluctant to hold CNY due to potential Western sanctions risk and the corresponding need for China to re-impose capital controls on foreigners