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The role of trust in banking:

In the current banking system, there are two types of trust involved. Trust in the asset and trust in the counterparty.

Fiat currencies are not backed by collateral. When a bank holds Fiat, it places trust in the govt. and CB that issued it.
This means a bank would be happy to hold $USD or $EUR,but less inclined to hold a volatile currency like the Zimbabwe Dollar or the Bolivar. his is problematic because this adversely affects daily banking services locally&internationally for people and entities in these countries
Similarly, when Bank A sends a payment to Bank B, the latter has to trust that the former will honor the settlement. There is always a risk that they won't, and this is called counterparty risk. This is the reason why the correspondent banking system is in place.
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1. Abramovich, was permitted by Putin to sell his oil company for $13 billion in 2005 to a Russian State firm. In 2008, he received a $1.8 billion, Russian tax payer funded, loan from Putin's, US sanctioned, VEB bank to bail out his co-owned global steel/mining company, EVRAZ.
2. Side Note 1 - In 2007, Abramovich and his Russian partners paid an estimated $3 billion to purchase three steel plants in the US, (Oregon, Colorado, and Delaware) and five steel plants in Canada (Alberta and Saskatchewan).
3. EVRAZ's US Claymont Steel plant closed on Dec. 2013, just three months before the US/EU imposed Ukrainian related sanctions against Russia. Claymont, Delaware is the boyhood home of VP Joe Biden, the Obama Administration's 2013-2016 public champion of Ukraine's revolution.
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