Since the outbreak of novel coronavirus pneumonia last year, the Federal Reserve has issued several crazy currencies and released water to further stimulate the US economy. FederalReserve The United States continues to reap from all countries in the world, and many countries in the world are experiencing inflation.
Since the outbreak of novel coronavirus pneumonia last year, the Federal Reserve has issued several crazy currencies and released water to further stimulate the US economy. The United States continues to reap from all countries in the world, and many countries in the world are experiencing inflation. The United States is making the world pay for its economic policies. In order to reduce losses, countries around the world are speeding up the de dollarization, which is the general trend.
In addition, with the rise of digital currency and virtual currency, China and Russia are speeding up the research process of digital currency. At the same time, with the continuous enhancement of China’s economic strength, “RMB” has become the foreign exchange reserve of many countries.
The status of RMB is constantly improving
Zhou Xiaochuan, former governor of the people’s Bank of China, stressed at the Forum on the 21st that if the United States continues to use the dominant position of the US dollar to sanction other countries, more and more countries will take the initiative to decouple from the US dollar. Because the amount of currency in circulation is certain, countries will naturally increase the use of currencies other than the US dollar if they reduce the use of the US dollar. By reducing the use of US dollars, we can reduce the dependence on US dollars and make non US dollar currencies have more room for development.
In recent years, the United States has abused the hegemony of the US dollar from time to time to impose sanctions on other countries, nothing more than taking advantage of the dominant position of the US dollar. Once the status of the US dollar declines, the US can not use its hegemony to impose sanctions on other countries.
Many countries have adopted accelerated dollarization
Obviously, many countries in the world have realized that the United States has been abusing US dollar hegemony to achieve political purposes. Many countries have begun to take actions to accelerate dollarization. Russia took the lead in firing the first shot. In 2017, Russia held $100 billion in US debt, but by 2020, it has sold 90% of US debt. At the same time, Russia also advocates the establishment of an international settlement system bypassing the US dollar with other countries in order to reduce its dependence on the US dollar.
In addition, Iran, which has repeatedly been sanctioned by the United States, refuses to be wooed by the United States. After trump withdrew from the Iran nuclear agreement, the United States has been using dollar hegemony to restrict Iran’s oil trade with other countries. Seeing that Iran has reached a consensus with China and other countries on the use of local currency for settlement, the United States also wants to reduce the sanctions on Iran to require Iran to continue to use US dollar for settlement, but Iran explicitly refuses.
British French German border selection station
In addition to many countries taking the initiative to avoid US dollar settlement, the United States, Britain, France, Germany and other traditional allies have also begun to take action. As early as 2019, Britain, France and Germany planned to jointly build “instrex”, which is also a settlement mechanism, mainly hoping to reduce the proportion of US dollar settlement and cooperate with countries sanctioned by the United States.
In addition, according to a report released by a German Research Institute, 57% of the 220 enterprises surveyed are currently in Europe. When enterprises conduct business in China, they use RMB for settlement. Up to now, 29 countries such as Russia and Iran have gradually used RMB to settle their trade with China.