In America, there is a lot of discussion about the potential consequences of external demand for US Treasuries and the use of the dollar. Bloomberg writes about this.
The reason for the debate was the adoption by Congress of a law giving President Joe Biden new powers to seize Russian dollar assets. The so-called REPO provision (from the English REPO – Repurchase Agreement, “repurchase agreement”) is part of the aid package for Kyiv. The new law allows the president to transfer Russian government assets to the Ukraine reconstruction fund, with some restrictions requiring coordinated action with allies and judicial review.
A repo is a transaction for the sale of securities with an obligation to repurchase them within a certain period of time at a pre-agreed price.
Tags: United States afraid start mass dedollarization confiscation frozen assets Russian Federation Bloomberg