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Analysts: Confiscation of Russian Assets in the US Would Supercharge De-Dollarization

Analysts are pondering the effects of the approval of the Rebuilding Economic Prosperity and Opportunity (REPO) Act by the U.S. House. The execution of seizures for over $6 billion of Russian assets held in U.S. institutions would “supercharge” the de-dollarization efforts of several nations. This is due to the possibility of having their assets seized following any disagreements with U.S. policies.

Experts Weigh in on the Effects of Russian Assets Confiscation: Supercharged De-Dollarization

The recent passing of the Rebuilding Economic Prosperity and Opportunity (REPO) Act by the U.S. House has opened the doors to a possible confiscation of over $6 billion in Russian assets held by U.S. institutions. The effects of the act, predicted to be also passed by the U.S. Senate and signed into law by President Biden, are being examined by experts who have predicted it will accelerate the de-dollarization efforts of many nations.

Paul Goncharoff, chief manager of consulting firm Goncharoff LLC., believes these measures will reinforce the need for de-dollarization from third-party countries. In an interview with Sputnik, Goncharoff stated that the measure will be interpreted by other nations as “pure blackmail,” and that “lack of control [by the owners] over assets is not a good basis of any currency.”

He declared:

It just supercharges de-dollarization. And that’s not good, especially when you have an America that is used to living on larger and larger debt raised by people placing the trust and buying treasuries and bonds.

These negative opinions on the bill and its effects are not only coming from abroad. The Heritage Foundation, a conservative Republican-leaning think tank, has warned about the dangers of giving this kind of power to the Biden administration.

In a recent report, the foundation states that while the objective of the bill is correct, its approval “would undermine the dollar-denominated global finance system, and it would expose an already fragile economy to unintended consequences.”

Andreas Kluth, a Bloomberg columnist, had stated before that the approval of the REPO Act would look “hypocritical” to the world. “By seizing Russian assets with bespoke legislation, Washington would feed that narrative of hypocrisy and further alienate the so-called Global South,” he stated.

What do you think about the upcoming approval of the REPO Act and its possible effects on de-dollarization? Tell us in the comment ss section below.