The Ukraine war and the subsequent sanctions imposed on Russia have raised several dilemmas for central banks. One set of problems are the real economy issues - high inflation before growth has recovered from the pandemic.

The second and more enduring set of questions are how to diversify forex reserves and make payments if there are tit for tat sanctions. This is a real problem for China with USD 3 trillion of reserves and India with USD 650 billion of forex reserves.

Larry Fink, Chairman and CEO of Blackrock wrote to shareholders that digital currencies may be developed to settle international payments.

To discuss this CNBC-TV18 spoke to Eswar Prasad, International Trade Policy Professor at Cornell University and author of The Future of Money.

Watch video for more.