Sanctions making world peace, stability more elusive

To restore its influence in the political and economic arenas, the United States has been initiating sanctions against other nations in recent years as a means to curb competition from its rivals and stifle their progress in our divided world.

Occasionally, its allies are hurt in the process. Sanctions against Russia for suspected interference in last year’s US presidential election has caused anger and consternation in Europe.

Energy companies, especially in Germany, and other sectors are affected by this action.

Threatening to cut off China from the Society for Worldwide Interbank Financial Telecommunication (Swift) network and impose additional sanctions to “prevent them from accessing the US and international dollar system” is questionable and unethical (N Korea slams ‘evil’ UN sanctions as Trump calls for tougher measures; Sept 14).

These are tactics of hooligans and bullies, not of admired and reputable countries. It is therefore unsurprising that many nations, especially the big economies, are entering into agreements to use their own currencies in bilateral trade, thereby moving away from the US dollar.

The Swift network, now the mainstay of financial institutions’ money transfers and information exchange, will be outdated in due course.

The telex system was the backbone of international payments, but was made obsolete and replaced by Swift in the 1970s.

With advances in technology now, cryptocurrencies and blockchain infrastructure and usage will gain prominence and momentum that could revolutionise and reinvent the conduct of business and investment.

The US dollar became the world’s reserve currency after World World II. There are, however, discussions about seeking a new reserve currency to substitute it.

With all these developments in the digital age, the relevance and supremacy of the US dollar will be in doubt, and New York’s status as the global financial capital will recede, in the years to come.

International relations are fraught with uncertainties and misunderstandings, marked by distrust and ideological differences.

Efforts should be made to manage and minimise discord through dialogue rather than threats of sanctions and military confrontation.

The motivation to avoid the outcomes of a nuclear battle or trade wars, which are known by all, is not reflected in the approach to resolving friction between powerful nations. World peace and stability remain elusive.

World leaders must, however, remain committed to campaigning for the accomplishment of this goal. The US has capable leaders in position to lead this pursuit.