Chinese Banks Urged To Switch From SWIFT And Drop USD In Anticipation Of US Sanctions

• Chinese Banks Urged To Switch From SWIFT And Drop USD In Anticipation Of US Sanctions
  by Tyler Durden, https://www.zerohedge.com/
  Even as the market does its best to ignore the unprecedented upheavals in US-Sino relations in everything from trade, to diplomacy, to financial relations, the truth is that there are tectonic shifts tearing apart decades of established norms between the two superpowers, and one doesn’t even have to dig too deep to see it.
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  Consider this: one month ago, we reported that Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, delivered a strong warning on the US currency, frontrunning Goldman by about a month in cautioning that the greenback’s reserve status may be ending. Speaking at the Lujiazhui Forum in Shanghai, Guo made four points:
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  * The Fed is the de facto central bank of the world. When its policy targets its own economy without considering the spillover effect, the Fed is “very likely to overdraft the credit of the dollar and the U.S.”
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  * The pandemic may persist for a long period of time, and countries keep throwing money at the problem with a diminished impact. “It is recommended that you think twice and reserve some policy space for the future.”
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  * There is no free lunch. Watch out for inflation.
  * Financial markets are disconnected from the real economy, and such distortions are “unprecedented.” It’s going to be “really painful,” when the policy withdrawal starts.
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