
Ukraine: the challenges for central banks

The war in Ukraine has cast a dark shadow over the global political and economic order. The application of sanctions to payments, central banks and commercial banks, and national reserves – the weaponisation of finance – entails the incursion of politics into the operation of the international monetary system in a way that may have momentous long-term consequences for central banks.
This article considers the impact of sanctions on the operation of the international financial system; how
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