Zoltan Poszar on The Global Financial System’s ‘Monetary Divorce’ from Dollar Hegemony

The comments below are an edited and abridged synopsis of an article by Tyler Durden

Zoltan Poszar has arguably been the world’s foremost expert in the ugly nuances and arcanery in world money-markets (and more recently, on how the financial and physical markets overlap on the geopolitical chessboard). However, amid all the chaos at Credit Suisse, Poszar has decided to branch out on his own.

Zoltan Poszar on The Global Financial System’s ‘Monetary Divorce’ from Dollar Hegemony - BullionBuzz - Nick's Top Six
Washington Politics – Money

In Bloomberg’s Odd Lots podcast, Poszar discusses the concept of Bretton Woods III and changing dynamics in the global economy. He says that the US-dollar-denominated world is shifting, and we are entering an era where multiple currencies will play a significant role. He talks about the growing focus in the West on reducing dependence on Chinese supply chains and becoming more self-sufficient in key areas.

Up for discussion: Moving away from the US dollar; increasing use of central bank digital currencies (CBDCs); creating a network of central banks to replace the current dollar-based system; CBDCs and RMB internationalization; rethinking the role of central banks as dealers of last resort in the foreign exchange market; evolving dynamics of global trade and the emergence of multiple currency choices; global vs local options; the importance of the Bank Term Funding Program (BTFP); and shadow banking.

Finally, Poszar says that “in the IMF data and in the data of the Gold Council, we see this massive increase in foreign central banks’ purchases of gold. That gold aspect definitely survives… You basically have gained sovereignty from a monetary perspective… So again, you will not have to run with as much FX reserves… I think that gold aspect definitely survives.”