Global currency drama: the US dollar fell sharply to 42.02%, the euro suffered internal worries, and the RMB rose against the trend?
Currency is not only a symbol of banknotes and coins, but also a flag of national strength. In today's wave of economic globalization, international currencies such as the US dollar, the euro, the British pound, the Japanese yen, and the renminbi have long become the protagonists on the economic stage, and their proportion not only reflects the influence of various countries in the global economy, but also outlines their strength in the political, cultural and other fields.
The story begins after World War II, when the US dollar almost monopolized the status of international currency, and through the Bretton Woods system, the US dollar was pegged to gold, which once made the US dollar firmly in the leading position of the international economy. However, time is running out, and today's statistics show that the share of the US dollar in international trade currencies has fallen to 42.02%.
The euro used to be the legal tender in the European Union and was once the second international trade currency after the US dollar. However, with the emergence of problems within the EU, such as the economic turmoil and inflation caused by Brexit, the international status of the euro has gradually been affected, and now it accounts for only 31.25%.
The renminbi, as the representative of the world's second largest economy, has attracted much attention for its international status. Although the renminbi currently accounts for only 2.77% of international trade currencies, China's long-term economic growth and strong export trade strength have made people look forward to the internationalization of the renminbi. Some predictions even suggest that the renminbi will overtake the yen and the pound to become the world's third-largest international trading currency within the next decade.
However, the internationalization of the renminbi has not been easy. In the past, China's trade settlement was mainly in US dollars, and the existence of the Cross-border Payment System (CIPS) in China may lead to a bias in SWIFT's statistics on the proportion of RMB. Nonetheless, as China's economy continues to grow in strength, the renminbi is expected to play a more important role in the future.
Historically, the U.S. dollar has been indiscriminately printed to cause inflation, and global confidence in the U.S. dollar is in jeopardy. However, the United States has managed to maintain its hegemony by skillfully pegging the dollar to oil. This has also prompted some countries to start thinking about "de-dollarization" and seek to get rid of their over-dependence on the dollar.
In general, the evolution of global currencies is influenced not only by the strength of countries, but also by changes in the international economic system. The future pattern of international currencies is full of expectations and uncertainties, and people are most concerned about whether the renminbi can catch up and become the new focus of the international economy. This monetary drama continues to be staged.