Credit Suisse claims we are witnessing the birth of a “new world monetary order”

Credit Suisse claims we are witnessing the birth of a “new world monetary order”

The Bretton Woods system was created after the massive economic devastation World War II caused. To save the global ethe conomy, 44 countries shook hands on the Bretton Woods, New Hemisphere, in 1944.

The Bretton Woods agreement would have the U.S. dollar fixated on gold and other world currencies on the U.S dollar. The agreement also introduced IMF to support agreement members who are in need and World Bank to support underdeveloped countries. However, the Bretton Woods system didn’t survive and collapsed in 1971.

During the 2000s, some economists argued that the policies practiced by Central Banks and Asia’s export-led strategy relying heavily on their inside money resembled that of the Bretton Woods. Therefore, even though there is no official agreement on it, many current economists claim that we are currently at The Bretton Woods II.

According to Credit Suisse’s recent analysis, the Bretton Woods II is also about to be terminated. So instead, credit Suisse argues we are entering a new worldwide monetary order: the Bretton Woods III.

Referring to the economic effects of the Russian invasion of Ukraine, Credit Suisse claims that the world is in a crisis about increasing the appeal of outside money instead of the inside money.

As the Bretton Woods II was built on inside money, which collapsed due to sanctions against Russian FX reserves, the world economy can take on a new order.

According to Credit Suisse, this new economic order will be centered around commodity-based currencies like China’s digital currency renminbi. These commodity-based currencies will further weaken the Eurodollar system, which will be much weaker after the war between Russia and Ukraine ends.

As a result, Credit Suisse argues that commodity-based currencies will contribute to western inflationary forces, and Bitcoin will benefit from this take-over if it remains relevant.

Get your daily recap of Bitcoin, DeFi, NFT and Web3 news from CryptoSlate

It’s free and you can unsubscribe anytime.

Posted In: Adoption, Opinion

Get an Edge on the Crypto Market 👇

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Source –

Cryptocurrency News and Real-time Coin Data

Powered by WPeMatico

scroll to top