bodyType

customContents

entityId

printArticlePageQuery

filter

article

body

urlAlias

articleSectionsContent

articleSeoArticle

articleSourceHeaderArticle

contentSchemaRenderContent

contentSubHeadlineContent

contentHeadlineContent

mainImagePrintArticleArticle

authorBlockPrintArticleArticle

contentSponsorTagContent

articlePianoPaywallContent

scmpYoutubeContent

hooksTrackPageViewArticle

query printArticlePageQuery(
  $entityId: String!
  $customContents: [CustomContentInput]
  $bodyType: BodyFormatTypeEnum
) {
  article(filter: {entityId: $entityId}) {
    entityId
    body(customContents: $customContents, type: $bodyType) {
      json
    }
    urlAlias
    ...articleSectionsContent
    ...articleSeoArticle_3o8td4
    ...articleSourceHeaderArticle
    ...contentSchemaRenderContent
    ...contentSubHeadlineContent
    ...contentHeadlineContent
    ...mainImagePrintArticleArticle
    ...authorBlockPrintArticleArticle
    ...contentSponsorTagContent
    ...articlePianoPaywallContent
    ...scmpYoutubeContent
    ...hooksTrackPageViewArticle
    id
  }
}

fragment articlePianoPaywallContent on Content {
  __isContent: __typename
  ...hooksPaywallPromiseContent
}

fragment articleSectionsContent on Content {
  __isContent: __typename
  sections {
    value {
      ...helpersCheckIfNewsSectionInFirstIndexSection
      ...entityLink
      name
      id
    }
  }
}

fragment articleSeoArticle_3o8td4 on Article {
  ...hooksArticleSeoArticle
  ...helpersCheckIsPostiesArticle
  ...helpersGetArticleTypeArticle
  entityId
  publishedDate
  updatedDate
  summary {
    text
  }
  subHeadline {
    text
  }
  body(customContents: $customContents, type: $bodyType) {
    text
  }
  keywords
  sections {
    value {
      name
      id
    }
  }
  topics {
    name
    entityId
    id
  }
  urlAlias
  authors {
    name
    id
  }
  images {
    style(filter: {style: "768x768"}) {
      url
    }
  }
  readingTime
}

fragment articleSourceHeaderArticle on Article {
  urlAlias
  ...entityLink
}

fragment authorBlockPrintArticleArticle on Article {
  ...defaultArticleDateContent
  ...authorNamesArticle
}

fragment authorNameAuthor on Author {
  ...entityLink
  name
  entityUuid
}

fragment authorNamesArticle on Article {
  authorLocations
  authors {
    entityId
    location
    ...authorNameAuthor
    id
  }
}

fragment blockquoteQuoteContent on Content {
  __isContent: __typename
  ...contentShareWidgetContent
}

fragment checkersCheckContentContainsStarlingImageContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment contentHeadlineContent on Content {
  __isContent: __typename
  headline
  socialHeadline
  ...contentHeadlineTagContent
  ...helpersUseContentSponsorContent
}

fragment contentHeadlineTagContent on Content {
  __isContent: __typename
  ...hooksContentHeadlineTagContent
}

fragment contentNewsletterWidgetContent on Content {
  __isContent: __typename
  topics {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
    id
  }
  sections {
    value {
      relatedNewsletters {
        ...helpersMassageToNewsletterItemNewsletter
        id
      }
      id
    }
  }
  ... on Article {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
  }
}

fragment contentSchemaRenderContent on Content {
  __isContent: __typename
  ...blockquoteQuoteContent
  ...imageContent
  ...inlineWidgetContent
  ...photoGalleryWidgetContent
  ...scmpYoutubeContent
}

fragment contentShareWidgetContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  shortUrl
  socialHeadline
  headline
}

fragment contentSponsorTagContent on Content {
  __isContent: __typename
  ...helpersUseContentSponsorContent
}

fragment contentSubHeadlineContent on Content {
  __isContent: __typename
  subHeadline {
    json
  }
  summary {
    json
  }
  ...contentSchemaRenderContent
}

fragment defaultArticleDateContent on Content {
  __isContent: __typename
  ...hooksArticleDateUtilsContent
}

fragment entityLink on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  __typename
  entityId
  entityUuid
  urlAlias
  urlRedirect {
    toUrl
    id
  }
  application {
    entityId
    id
  }
  ... on Section {
    fullSectionPath {
      entityId
      id
    }
    parentSection
  }
  ...helpersAppBarVariantBase
  ...helpersApplicationBase
  ...helpersCheckIsPlusArticle
  ...helpersStyleSectionContent
}

fragment helpersAppBarVariantBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsLiveArticle
  ...helpersCheckIsPlusPage
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...helpersSectionContent
  ...helpersStyleSectionContent
}

fragment helpersApplicationBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPlusPage
}

fragment helpersCheckIfNewsSectionInFirstIndexSection on Section {
  name
}

fragment helpersCheckIsAmpEnabledArticle on Article {
  entityId
  types {
    value {
      entityId
      id
    }
  }
  sections {
    value {
      entityId
      id
    }
  }
  disableOffPlatformContent
  sponsorType
  published
  ...helpersCheckIsPlusArticle
  ...helpersCheckIsPostiesArticle
}

fragment helpersCheckIsLiveArticle on Article {
  flattenTypeIds
  liveArticle {
    status
    id
  }
}

fragment helpersCheckIsMainTopicContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment helpersCheckIsPlusArticle on Content {
  __isContent: __typename
  ... on Article {
    paywallTypes {
      entityUuid
      id
    }
  }
}

fragment helpersCheckIsPlusPage on Page {
  urlAlias
}

fragment helpersCheckIsPostMagazineArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesPage on Page {
  urlAlias
}

fragment helpersCheckIsStyleArticle on Content {
  __isContent: __typename
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersGetArticleTypeArticle on Content {
  __isContent: __typename
  ... on Article {
    types {
      value {
        entityId
        id
      }
    }
  }
}

fragment helpersMassageToNewsletterItemNewsletter on Newsletter {
  entityId
  name
  alternativeName
  description {
    text
  }
  summary {
    text
  }
  homepageDescription {
    text
  }
}

fragment helpersSanitizeArticleTypeEntityIdsArticle on Article {
  types {
    value {
      entityId
      id
    }
  }
}

fragment helpersSanitizeAuthorTypesArticle on Article {
  authors {
    types
    id
  }
}

fragment helpersSanitizedAuthorEntityIdsArticle on Article {
  authors {
    entityId
    id
  }
}

fragment helpersSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersStyleSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersUseContentSponsorContent on Content {
  __isContent: __typename
  topics {
    entityId
    sponsor {
      ...sponsorTagSponsor
      name
      type
      id
    }
    id
  }
  ... on Article {
    sponsorType
  }
  ...helpersCheckIsMainTopicContent
}

fragment hooksArticleDateUtilsContent on Content {
  __isContent: __typename
  createdDate
  publishedDate
  updatedDate
}

fragment hooksArticleSeoArticle on Article {
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...hooksContentHeadlineTagContent
  ...helpersCheckIsAmpEnabledArticle
  entityId
  headline
  socialHeadline
  types {
    value {
      entityId
      id
    }
  }
  authors {
    entityId
    id
  }
  images {
    generic_og: style(filter: {style: "og_image_scmp_generic"}) {
      url
    }
    styles(filter: {styles: ["og_image_posties_article", "og_postmag", "og_image_style", "og_image_scmp_analysis", "og_image_scmp_explainer", "og_image_scmp_editorial", "og_image_scmp_fact_check", "og_image_scmp_debate", "og_image_scmp_live", "og_image_scmp_obituary", "og_image_scmp_opinion", "og_image_scmp_review", "og_image_scmp_series", "og_image_scmp_generic"]}) {
      url
      style
    }
    type
  }
  urlAlias
}

fragment hooksContentHeadlineTagContent on Content {
  __isContent: __typename
  __typename
  ... on Article {
    types {
      value {
        name
        entityId
        description {
          text
        }
        id
      }
    }
    ...helpersCheckIsStyleArticle
  }
  flag
  sections {
    value {
      name
      id
    }
  }
  ...hooksContentHelperContent
}

fragment hooksContentHelperContent on Content {
  __isContent: __typename
  ...helpersSanitizeArticleTypeEntityIdsArticle
  ...helpersSanitizeAuthorTypesArticle
  ...helpersSanitizedAuthorEntityIdsArticle
  flag
}

fragment hooksPaywallPromiseContent on Content {
  __isContent: __typename
  entityId
  ...helpersCheckIsPostiesArticle
}

fragment hooksTrackPageViewArticle on Article {
  entityId
  publishedDate
  headline
  sections {
    value {
      name
      id
    }
  }
  urlAlias
  authors {
    name
    id
  }
  entityUuid
}

fragment imageContent on Content {
  __isContent: __typename
  headline
  ...checkersCheckContentContainsStarlingImageContent
}

fragment inlineWidgetContent on Content {
  __isContent: __typename
  ...contentNewsletterWidgetContent
}

fragment mainImagePrintArticleArticle on Article {
  images {
    title
    url
    isSlideshow
    size_652x446: style(filter: {style: "652x446"}) {
      url
    }
  }
}

fragment photoGalleryDialogContent on Content {
  __isContent: __typename
  __typename
  ...contentShareWidgetContent
}

fragment photoGalleryWidgetContent on Content {
  __isContent: __typename
  ...photoGalleryDialogContent
}

fragment scmpYoutubeContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  publishedDate
}

fragment sponsorTagSponsor on Sponsor {
  name
  type
  images {
    url
  }
}


sections

types

disableOffPlatformContent

sponsorType

published

headline

socialHeadline

authors

images

publishedDate

updatedDate

summary

subHeadline

keywords

topics

readingTime

authorLocations

entityUuid

James A. Fok

Much ink has been spilled speculating over the longer-term consequences for the US dollar of the unprecedented financial sanctions imposed on Russia in the wake of military action in Ukraine. Will it lead the world to de-dollarise? And will it contribute to greater international adoption of the renminbi?
Perhaps. But these lines of discussion miss a more profound point: what do we risk by weaponising the global financial commons?
In conventional warfare, there is a long-established principle of non-combatant immunity. Financial warfare respects no such rule. The immediate impacts of the latest sanctions on Russia were a spike in oil prices and a short-lived run on the rouble. However, Sri Lanka – which has no direct involvement in the Ukraine situation – has subsequently experienced violent protests, precipitated by fuel price inflation that has exacerbated an economic crisis.
It is unlikely that the South Asian nation will be the last innocent bystander to be buffeted by the fallout from the sanctions. As is the case so often, the world’s poorest are the most vulnerable.


Then there are the third-order effects. Given the complex intertwining of markets through globalisation, these are hard to predict. Many exporter nations, particularly in Asia, have built up large dollar reserves as a result of international trade.
If they lost confidence that they would be able to access those savings in the event of a rainy day, would they still be willing to sell their goods and labour in return for dollars? If not, how might this impact inflation in advanced nations? And what are the knock-on consequences for social stability?
Evidence of the effectiveness of financial sanctions is, at best, mixed. The US has maintained a wide-ranging embargo on Cuba since 1962 but has failed to achieve regime change there.
More recently, following the 2020 passage of the national security law for Hong Kong, the US State Department targeted a raft of sanctions at mainland Chinese and Hong Kong officials deemed to have been behind it.
Unable to access banking services, Hong Kong’s chief executive drew her salary in cash. But does anyone seriously believe that forcing Carrie Lam Cheng Yuet-ngor to stuff banknotes under her mattress is going to bring about any change in Chinese policy towards Hong Kong?


While targeting individuals associated with unpopular policies makes for good political theatre, it is hard to discern any benefit from such puerile tit-for-tat. In fact, a European diplomat recently shared with me a challenge that he faces following the election of Hong Kong’s next chief executive. Since John Lee Ka-chiu is a sanctioned person, the diplomat’s country will be unable to officially host the territory’s new leader.
Just when better communications and mutual understanding are sorely needed, sanctions have simply created another barrier.
Equally of concern is that, at a time when Hong Kong is in dire need of more competent people in government, the potential risk of becoming subject to financial sanctions is likely to deter many of the most qualified candidates.
Hong Kong should stick to US dollar currency peg: Joseph Yam
The dollar and influence over the infrastructure supporting the dollar-based global monetary system are significant sources of American power. In recent decades, the US has displayed a growing willingness to weaponise the dollar against its strategic rivals, even in the face of opposition from its allies – such as when the Trump administration reimposed sanctions on Iran in 2018 after withdrawing from the UN-backed nuclear non-proliferation deal.
Given the unilateral power it enjoys over the arteries of international finance though, why should the US agree to surrender this?
Although the dollar is commonly seen as an “exorbitant privilege”, Americans have borne a high cost for allowing their currency to serve as a global utility. As US growth has fallen behind that of other countries, the balance of payments deficits needed to supply dollar liquidity to the rest of the world have spurred precarious levels of debt.

Structural overvaluation stemming from international demand for dollars in trade and investment has exacerbated a loss of industrial competitiveness, hurting US workers.
And while the dollar has long defied the doomsayers, US policymakers would do well to consider what a post-dollar world might look like. The accumulated pressures of high indebtedness, unrestrained monetary expansion and abuse of financial sanctions are eventually likely to lead to a tipping point, where the baton of dollar hegemony passes to another currency. How would they feel about a rival power enjoying the same dominance of the arteries of global finance as the US enjoys today?
America remains in a position to take the lead in reforming the international monetary system and defining a new framework of international rules. Foregoing its financial arsenal to create neutrality in the global financial commons might be viewed as an act of enlightened self-interest.
James A. Fok is a veteran financial and strategic adviser to corporations and governments, and a former senior executive at Hong Kong Exchanges and Clearing


Why it is in US interests to give up its dollar privilege to forge a more neutral financial order

A woman leaves a currency exchange office in St Petersburg, Russia. Photo: AP

The US Treasury Department in Washington. Although the dollar is commonly seen as an “exorbitant privilege”, Americans have borne a high cost for allowing their currency to serve as a global utility. Photo: Bloomberg 

Opinion

Comment

Business


A system in which the global financial commons can be weaponised by the dominant power may favour the US now, but not when it slips from its perch
American industry and people are also paying a price for their country to maintain its exorbitant privilege



A system in which the global financial commons can be weaponised by the dominant power may favour the US now, but not when it slips from its perch. American industry and people are also paying a price for their country to maintain its exorbitant privilege.


Currencies

Macroscope

Banking & finance

Yuan

United States

Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


Column

Macroscope | Why it is in US interests to give up its dollar privilege to forge a more neutral financial order

A system in which the global financial commons can be weaponised by the dominant power may favour the US now, but not when it slips from its perch American industry and people are also paying a price for their country to maintain its exorbitant privilege

A system in which the global financial commons can be weaponised by the dominant power may favour the US now, but not when it slips from its perch

American industry and people are also paying a price for their country to maintain its exorbitant privilege