The Correlations Are Finally Breaking

The article argues that the West’s removal of Russia from SWIFT in February 2022 fractured confidence in the dollar’s neutrality and suggests that restoring that trust will be difficult. The implication is a gradual shift toward less predictable FX/financial plumbing risk tied to sanctions enforcement rather than a near-term policy change.

Analysis

The article argues that the West’s removal of Russia from SWIFT in February 2022 fractured confidence in the dollar’s neutrality and suggests that restoring that trust will be difficult. The implication is a gradual shift toward less predictable FX/financial plumbing risk tied to sanctions enforcement rather than a near-term policy change.