Why does the world set off a wave of dollarization?
The global wave of dollarization is due to the crisis of global confidence in American financial hegemony.
historically, dollar hegemony is essentially the product of American strength, and it is a concrete manifestation of American abuse of financial hegemony. As the saying goes, the wind and water turn. At present, with the weakening of the influence of the United States in the world, the economies of emerging markets and developing countries are indeed rising rapidly, the contrast between old and new forces in the world has undergone profound changes, and the trend of world multipolarization has become increasingly obvious, thus forming the fundamental driving force of "dollarization", leading many countries to seek substitutes for the US dollar, and the global monetary system is facing reshaping.
? In recent years, looking around the world, whether in Latin America, Africa, the Middle East, Europe and Asia-Pacific, more and more countries are implementing dollarization, and the global dollarization has ushered in a round of climax:
First, Malaysian Prime Minister Anwar proposed the establishment of the "Asian Monetary Fund" during his recent visit to China; Second, The Export-Import Bank of China and the Saudi Arabian National Bank reached the first RMB loan cooperation; Third, the Brazilian government announced that it would directly settle with China in local currency; Fourth, India announced that trade with Malaysia can be settled in Indian Rupee; Fifth, on April 26th this year, Argentine Economy Minister Felipe Massa held a press conference, announcing that Argentina would stop using US dollars to pay for goods imported from China, and instead use RMB for trade settlement.
measures such as substantially reducing the holdings of US debt and accelerating the diversification of foreign exchange reserves have led to the impact of the monopoly position of the US dollar in international settlement, thus making the trend of "dollarization" more and more obvious. According to relevant media reports, in recent years, many countries have begun to significantly reduce their holdings of US debt. Little friends know that Japan is a die-hard ally of the United States, and its holdings of US Treasury bonds have remained high. Even so, in 222, Japan sold $224.5 billion in succession. Correspondingly, the central banks of various countries are also speeding up their efforts to reserve gold.
When the trend of "dollarization" in various countries becomes more and more obvious, with the continuous emergence of China's overall power, the RMB is extremely active in the international market; At the same time, in the process of accelerating the diversification of foreign exchange reserves, more and more countries are trying to break the monopoly position of US SWIFT in cross-border payment and settlement. For example, Russia's SPFS, EU INSTEX, and China's CIPS are all cross-border payment and settlement systems developed in their own currencies, which perfectly bypasses the US dollar control and will break the monopoly of the original US dollar and SWIFT systems.
with the continuous strengthening of financial cooperation among countries in the region, weakening the dependence on the US dollar has reached a * * * understanding, which has contributed to the dollarization. As the saying goes, there are no eternal friends, only eternal interests. In recent years, regional financial cooperation between countries has been very close, and it is common for countries to hold a group to weaken the dependence on the US dollar within the cooperation region. For example, the BRICS countries stipulate that a relatively reliable alternative mechanism for international settlement will be jointly formulated within the cooperation region to explore the possibility of establishing an international reserve currency; At the same time, the SCO decided to increase the use of its own currency within the scope of cooperation; ASEAN member countries have also reached a consensus to gradually reduce their dependence on the US dollar through local currency trading plans. In this way, with the continuous strengthening of regional financial cooperation among countries, the "dollarization" financial cooperation between regions will be gradually established and improved, and the related settlement modes such as currency coordination and cross-border payment will be gradually improved. The "dollarization" in the region will form a * * * awareness and gradually spill over, which will condense into a global wave of dollarization, thus bringing great shock to the monopoly position of the US dollar and the US dollar payment system.
as the saying goes, a lean camel is bigger than a horse. Although there has been a wave of de-dollarization in the world, for a long time, the US dollar still occupies the channels of currency settlement, payment and clearing in the world, and has formed a complete US dollar network in the fields of international foreign exchange and international finance. In the short term, de-dollarization cannot be achieved overnight. In the long run, the diversification of the monetary system is the general trend of world economic development and the inevitable trend of world multipolarization.
I think that the global wave of de-dollarization indicates that the international currency and the international system will be profoundly reshaped, which will break the monopoly position of the dollar, and it is a precious opportunity for the adjustment of the world financial cycle. To seize the opportunity and face the trend is also an opportunity and a challenge for all countries. With the growing national strength, at present, RMB is internationalized, so it is even more necessary to seize the opportunity to accelerate the extensive use of RMB in cooperation regions and in cross-border trade and direct investment scenarios, and further expand the global influence of RMB and the channels of settlement, payment and liquidation, as well as the use scenarios of RMB in cross-border trade and direct investment.