Geofinance: thinking about new dynamics between finance and geopolitics

Geofinance: thinking about new dynamics between finance and geopolitics

The rise of economic sanctions, the questioning of the dollar as the dominant currency, or the fragmentation of international payment systems have one thing in common: geofinance, or the intertwining of finance and geopolitics.

In a context of heightened tensions between powers, finance is no longer a simple economic tool. It is becoming an instrument of strategic influence, mobilized by States in an increasingly multipolar world.

An essential read signed André Lévy-Lang and Julien Pincet

In two complementary contributions, André Lévy-Lang, founding president of the Louis Bachelier Institute, and Julien Pincet, responsible for the Geofinance project, offer a structured reading of this complex phenomenon and its lasting implications.

In theitem published on the blog Regards d'Experts of Caisse des Dépôts Group, they provide a clear summary of the current and future challenges of geofinance, through the prism of the increasing weaponization of finance in international power relationships.

Read it here: https://www.caissedesdepots.fr/blog/article/de-la-geoeconomie-la-geofinance-larsenalisation-de-la-finance

In our publication Opinions & Debates, they delve deeper into the historical and structural roots of geofinance, between the transformation of financial systems since 1971 and the geostrategic shift that began in 1991. A rigorous analysis that highlights the consequences on financial actors (banks, markets, infrastructures), but also the adaptation strategies deployed by States.

To consult here: https://www.institutlouisbachelier.org/au-programme/co-editions

A new discipline of analysis

Geofinance calls for us to renew our reading grids:

• It sheds light on relationships between states, financial institutions and strategic businesses.
• It highlights the geopolitical effects of technological transformations (blockchain, AI, cross-border payments).
• It finally paves the way for new fields of research, at the heart of the missions of the Louis Bachelier Institute.

Understanding these dynamics has become a necessity in order to anticipate risks and grasp sovereignty issues in a changing world.

Also to listen to: our podcast dedicated to geofinance

To extend this reflection and give a voice to those who make geofinance a living in the field, the Louis Bachelier Institute is devoting an episode of its podcast to this strategic subject.

How is finance used as a power lever? What sanctions evasion mechanisms are emerging? How are businesses adapting to these new realities?

With our guests, researchers, experts, and practitioners, we explore behind the scenes of a world where every financial decision can have major geopolitical repercussions.

Listen to it here: https://www.institutlouisbachelier.org/au-programme/podcast

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