Director’s cut Kathleen Tyson

21 views | 18 days ago

Multicurrency mercantilism is not a standard economic term, but it can be understood as a modern variation of mercantilism that operates across multiple currencies. Let’s break it down: 🔁 Mercantilism (classic): An economic theory dominant from the 16th to 18th centuries. Countries aimed to maximize exports and minimize imports to accumulate wealth, often measured in gold or silver. Trade surpluses were seen as national strength. 🌍 Multicurrency Mercantilism (modern interpretation): This concept refers to a strategic economic policy or behavior in which a country, corporation, or financial bloc seeks to: Accumulate reserves in multiple foreign currencies (not just USD or gold), Maintain a trade surplus by keeping their own currency relatively undervalued, Expand geopolitical and economic influence through selective currency usage in trade, investment, and finance. 🧠 Key Characteristics: Currency diversification: Instead of relying solely on one reserve currency (like the USD), entities seek to hold or transact in multiple strong or strategically aligned currencies (e.g., euro, yuan, yen, etc.). Exchange rate manipulation or management: Countries may intervene to prevent their currency from appreciating to keep exports competitive. Strategic bilateral trade: Using non-dollar currencies in trade agreements to reduce dependence on dominant financial systems (e.g., BRICS de-dollarization efforts). Geopolitical hedging: Building financial resilience and influence by engaging in trade, lending, and investment across currency blocs. 🧭 Examples: China accumulating USD, euros, yen, and expanding the use of the yuan in trade finance. Russia and China engaging in energy trade using rubles or yuan instead of dollars. Middle Eastern sovereign funds investing in assets across various regions and currencies to balance exposure. 📌 Summary: Multicurrency mercantilism is a modern, strategic approach that combines classical mercantilist ideas (export focus, accumulation of wealth) with the realities of a global, multipolar currency system. It reflects the desire to gain economic security and influence through diversified currency reserves and trade practices.

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