U.S. sanctions and trade policies drive allies like Canada and France away from dollar dependence
By
Sasha Rogelberg
Fresh out the oven, still warm. Top of the tray.
Summary
The article discusses a growing de-dollarization trend where even U.S. allies like Canada and France are moving away from the U.S. dollar and American financial systems. Canada announced a $25 billion sovereign wealth fund to reduce economic dependence on the U.S., while France withdrew all 129 tons of its gold from the Federal Reserve Bank of New York and repatriated it to Paris. Economists warn that aggressive U.S. trade policies and the ongoing war in Iran have eroded global trust in American financial systems, creating a paradox where U.S. sanctions are pushing allies away from the dollar for the first time in 80 years.
Key quotes
· 3 pulled'Different from anything in the past 80 years of dollar dominance'
Canadian Prime Minister Mark Carney announced last week a $25 billion sovereign wealth fund to bolster domestic infrastructure, part of an effort to make Canada's economy less dependent on the U.S.
France, considered America's oldest ally, instead replaced the gold with an updated bullion and stored it in Paris
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