This issue of the international edition of Wenhua Zongheng (文化纵横) explores the widely debated topic of de-dollarisation. The articles examine the US dollar’s hegemonic status in the international economic order, efforts across the Global South to develop alternatives, and the role of the BRICS in this process.
From De-Risking to De-Dollarisation: The BRICS Currency and the Future of the International Financial Order by Gao Bai
Since the war broke out, Switzerland has abandoned its neutrality and participated in the EU’s financial sanctions against Russia. Credit Suisse alone froze $19 billion worth of Russian assets, more than a third of all Russian assets in Switzerland, while the Swiss government froze more than $8 billion worth of Russian and Belarusian assets.
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Due to these sanctions, wealthy individuals worldwide began to move their funds out of Switzerland. For instance, Credit Suisse experienced severe client divestment, reaching $119 billion in the final quarter of 2022 alone.
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Leading Swiss banker Josef Ackermann noted that the Swiss government had put the rule of law and property rights at risk when it made individuals pay for the actions of the Russian government. Citizens of other countries would assume that the Swiss government would do the same in the future to make them pay for the wrongs done by their homeland governments. Confiscating the assets of Russian individuals has been devastating for the Swiss financial industries.
Somehow this is the first I’ve heard of this? I’m a little shocked. I just assumed Switzerland was always gonna be the neutral banking country. Really seems like they’ve shot themselves in the foot here.
