BERKELEY When the United States and its G-7 partners imposed sanctions on Russia’s central bank and barred Western financial institutions from doing business with Russian counterparties, commentators warned of far-reaching changes in the global monetary and financial order. Other countries would see those sanctions as yet another step in the West’s “weaponisation” of finance.
Importantly, the future of large-value cross-border payments in Southeast Asia and the renminbi’s role depend in part on how Washington responds to efforts aimed at transforming local currency financial infrastructure in the region.