Preface
Recently, there have been some fluctuations in the international financial market, which have attracted widespread attention, including the depreciation of many currencies. And behind all this, there is an inextricable link with the trend of the dollar.
The US dollar is strong, and many currencies have suffered
The U.S. dollar has long been one of the world's most important reserve currencies and one of the most important currencies in international trade and settlement, so fluctuations in the U.S. dollar index have a significant impact on global markets.
Recently, boosted by the continuous recovery of the U.S. economy and the rising expectations of the Federal Reserve's interest rate hikes, the U.S. dollar index has soared, which has directly led to the depreciation of many currencies, including the yen, South Korean won, and Indian rupee, which has also brought certain pressure to the economic development of these countries.
Among them, countries such as Japan and South Korea can be said to be the most directly affected by the strength of the US dollar, because their export trade occupies a relatively important position, once the national currency depreciates sharply, it will directly affect the export competitiveness of enterprises, but also bring certain obstacles to local economic development.
Under such circumstances, in order to maintain the stability of their own currencies, countries have also urgently introduced a series of measures, such as intervening in the foreign exchange market and strengthening the fundamentals of their own economies, in an effort to mitigate the impact of the strengthening of the dollar.
The US dollar harvested the market, causing concerns from all sides
As a matter of fact, the reason why the US dollar can be reaped wantonly in the global market is inseparable from a series of financial policies and international strategies advocated by the United States for a long time.
In the past period, especially during the epidemic, in order to alleviate the pressure on the domestic economy, the United States has not only carried out quantitative easing policies, but also frequently introduced various stimulus plans, which directly led to the influx of a large number of dollars into the international market and also exacerbated the volatility of the global capital market.
The large-scale influx of these dollars has undoubtedly had a certain impact on the currencies of other countries, and has also directly led to the emergence of asset price bubbles on a global scale, and may even exacerbate inflationary pressures in some countries.
The strengthening of the US dollar may also directly lead to the intensification of debt risks in other emerging market countries, and even trigger financial crises in some countries, bringing certain uncertainty to the recovery process of the global economy.
The reason why the US dollar can be so "rampant and hegemonic" in the global market is inseparable from the "dollar hegemony" strategy advocated by the United States for a long time, and this "dollar hegemony" is not only a manifestation in the economic field, but also more often used to carry out some "Zheng Zhi manipulation" and even "financial sanctions" against other countries.
Build a multipolar international monetary system
In the face of the various challenges brought about by the strength of the US dollar and the "hegemony of the US dollar", the international community has become more and more aware of the problems brought about by the "dominance of a single currency", and has begun to call for accelerating the reform of the international monetary system and building a more fair, open and inclusive international economic order.
It can be said that as the world's second largest economy, China is gradually promoting the internationalization process of RMB, not only to meet the needs of its own economic development, but also to meet the challenges of the current international financial landscape.
With the continuous expansion of the application of RMB in the world, it is also possible that more countries will be willing to carry out direct clearing and settlement of RMB with China in the future, or even use RMB as a reserve currency, which will also help gradually reduce the "dollar dependence" in international trade and investment, enhance China's voice in the international financial system, and promote the development of the international monetary system in the direction of multipolarization.
In order to truly realize the multipolarization of the international monetary system, China alone is far from enough, but requires the joint efforts of all countries around the world to strengthen the coordination of macroeconomic policies, promote the reform of the International Monetary Fund and other international financial institutions, and provide more support and guarantee for the currency internationalization process of other emerging market countries.
epilogue
At present, some fluctuations in the international financial market have also sounded the alarm bell for us, and the dominance of a single currency will indeed bring certain "side effects" to the global economic system, and all countries need to work together to promote the reform of the international monetary system and build a more stable and inclusive international financial order.
It is also hoped that the United States and some other developed countries will be able to view their international status objectively, stop abusing the so-called "national stability" and "renquan min zhu" and other excuses to unreasonably suppress and sanction other countries, and believe that only under the framework of multilateralism and multilateral cooperation can common development and win-win results be achieved in the true sense.
Resources
1. [The U.S. dollar index refreshed a one-year high, and many currencies fell under pressure] (https://finance.sina.com.cn/money/forex/forexnews/2022-03-10/doc-imcwiwss8804072.shtml)
2. [Under the hegemony of the US dollar, how to break through the internationalization process of RMB] (https://finance.sina.com.cn/money/fxcj/2022-03-11/doc-imcwiwss8970733.shtml)
3. [Challenges and Choices of Global Economic Governance under the Hegemony of the US Dollar] (http://www.xinhuanet.com/world/2022-03/10/c_1128435957.htm)