Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

HOW COVID-19 COULD CHANGE THE FINANCIAL WORLD ORDER
America has dominated global finance since the end of the second world war when the
current system was built
...

With a vacuum emerging at the top of the financial order China is vying to compete for
greater control
...

In global finance, America is king
...
The dollar makes up most central-bank reserves
and is the currency of international trade 80% of global supply chains use dollars which gives
America significant power
...
It already has the world’s
second-largest economy
...

Chinese banks now have more assets than those in Europe or America but most of their
business is within China
...

The covid-19 pandemic could increase China’s financial influence
...
Following the
outbreak in Wuhan, China has positioned itself as a global leader, containing the outbreak,
agreeing to deals to suspend repayment of some of its loans and charging ahead with vaccine
development
...

While emerging markets saw the value of bonds plummet earlier in 2020, China’s
government bonds remained stable which is a good gauge of trust in a country’s economy
...
America has huge influence over the current
system, thanks to SWIFT, the world’s largest network for transferring money
...

Russia feared being excluded after its invasion of Crimea and some Iranian banks were
blocked from using the system in 2018 to enforce US sanctions
...
Instead, Chinese companies are targeting a
different part of the financial system; the way in which consumers spend their money
...

Rather than using bank accounts or credit cards for transactions, consumers load money into
“digital wallets” They can then do almost anything, from paying parking fines to making
investments or ordering taxis without any of this money flowing through the banks creating a
parallel financial ecosystem
...
In 2019, Chinese customers made mobile
payments worth a total of $49trn
...
Ant´s financial, app Alipay is
accepted in 56 countries, regions and other digital-wallet firms are buying into their tech
...

As China’s financial sphere of influence grows, it is unclear whether it will complement
America’s by creating more competition or undermine the existing system
...
As the world recovers from the virus and economies begin to open up,
China will be well placed to make significant gains

---