McDowell Discusses How Geoeconomics Impacts Central Bank Reserve Managers in OMFIF Article

July 18, 2023

OMFIF

Daniel McDowell

Political Science Department

Comparative Politics/International Relations Speaker Series

Economic Policy

Government

International Affairs

United States

OMFIF

Daniel McDowell

"Geoeconomics will loom large in reserve manager decisions," written by Associate Professor of Political Science Daniel McDowell, was published in the Official Monetary and Financial Institutions Forum (OMFIF).

"The U.S.’s penchant for financial sanctions does not jeopardise dollar supremacy," says McDowell. "The currency retains undeniable economic and political advantages over all rivals. U.S. Treasury bonds will remain the fundamental component of most central bank portfolios for the foreseeable future," he says.

"However, monetary authorities in states with adversarial relations with the U.S. are exploring ways to hedge against the risk of asset freezes. That will intensify in the near term in the wake of the most recent sanctions against the Central Bank of Russia," McDowell says.