Recently, an unprecedented "currency defense war" is quietly starting in Asia and even around the world.
In this war, the cooperation between China and Russia is particularly eye-catching, and they are taking concrete actions to pry the foundation of dollar hegemony, which has aroused widespread attention in the international community.
In this "currency war", the role of the US dollar has become increasingly complex and sensitive.
As the most important currency in the world today, the US dollar accounts for about 40% of international trade settlements, and its assets account for 60% of the world's reserve currency.
As a result, while the US dollar performs its international monetary function, it has also become a "sharp weapon" for the United States to harvest global wealth.
However, with the implementation of the Federal Reserve's successive interest rate hikes, the dollar has appreciated sharply and capital has repatriated from emerging markets, which has undoubtedly exacerbated the risks faced by emerging economies and the world economy.
Recently, the sharp decline in the exchange rate of the local currencies of many countries such as the South Korean won, the Thai baht, the Indian rupee, and the Indonesian rupiah against the US dollar is a concrete manifestation of this risk.
In order to deal with this risk, many governments have taken action to "save foreign exchange".
For example, in South Korea, the central bank acted quickly to stabilize the market after the recent sharp decline in the size of foreign exchange reserves.
Indonesia's central bank also urgently raised interest rates and bought local currency to intervene in the exchange rate to curb the depreciation trend of the local currency.
These measures fully demonstrate the determination and action of governments in the "currency defense war".
However, the roots of this "currency war" lie in the hegemony of the dollar.
The hegemony of the dollar has not only allowed the United States to harvest global wealth, but also plunged the global economy into a state of instability.
Against this backdrop, the international community is calling for "de-dollarization" more and more.
More and more countries are seeking to move away from their dependence on the US dollar in search of a more stable and secure economic environment.
In this process, the cooperation between China and Russia is particularly important.
For various reasons, both China and Russia are regarded as "thorns in the side" of the United States, which has also prompted the two countries to carry out deeper cooperation in the economic field.
Especially in the process of "de-dollarization", the actions of China and Russia are very obvious.
Russia has had to seek changes due to sanctions imposed by Western countries due to the Russia-Ukraine conflict and its exclusion from the dollar-settled payment system.
China, on the other hand, is seen as the biggest competitor by the United States and needs to take steps to counter the threat from the United States.
Against this backdrop, China and Russia have naturally come together to leverage the foundation of dollar hegemony.
Cooperation between China and Russia is reflected not only in the trade and economic spheres, but also in the financial sphere.
According to Russian Foreign Minister Sergei Lavrov, more than 90% of settlements between China and Russia are made in their own currencies, which means that Sino-Russian trade has been almost completely "de-dollarized".
This move not only contributed to the continued rise of the renminbi in the Russian economy as one of the most popular foreign currencies in Russia, but also freed Russia from its dependence on the US dollar.
This model of cooperation is not only conducive to the development of China and Russia themselves, but also conducive to promoting the stability and prosperity of the global economy.
As the international community becomes more wary of the US dollar, more and more countries are seeking to wean themselves off the US dollar.
The cooperation between China and Russia undoubtedly provides a viable reference model for other countries.
Of course, cooperation between China and Russia also faces some challenges and risks.
For example, the United States may impose tougher sanctions on China and Russia to curb their cooperation.
In addition, China and Russia also need to maintain equal and mutually beneficial relations in cooperation to ensure the durability and stability of cooperation.
However, regardless of the challenges and risks, China and Russia have already demonstrated their determination and ability to act in the process of "de-dollarization".
Their cooperation will not only leverage the foundation of the dollar's hegemony, but will also make an important contribution to the stability and prosperity of the global economy.
It is worth mentioning that in this global "currency war", the cooperation between China and Russia is not isolated.
Recognizing the potential risks of over-reliance on the US dollar, more and more countries are actively exploring diversified monetary systems.
Some countries have included or are considering including other currencies such as the renminbi and the euro in their foreign exchange reserves to reduce their dependence on the US dollar. This trend is important for the diversification and stability of the global monetary system.
At the same time, we should also note that the hegemony of the US dollar was not achieved overnight, and its formation and maintenance have gone through a long historical process.
Therefore, to truly leverage the foundation of dollar hegemony, it requires the joint efforts and long-term struggle of all countries in the world.
The cooperation between China and Russia has undoubtedly injected new impetus and confidence into this process.
In addition, we need to pay attention to the deeper issues behind the hegemony of the dollar.
The hegemony of the US dollar is not only an economic phenomenon, but also reflects the global hegemonic ambition of the United States in many fields such as politics and military.
Therefore, in order to truly get rid of the influence of the hegemony of the US dollar, it is necessary to start from multiple levels, including strengthening international cooperation, promoting multilateralism, and promoting the balanced development of the global economy.
In this global "currency war", the cooperation between China and Russia provides us with a new perspective and direction of thinking.
Their actions are not only conducive to their own development and security, but also make an important contribution to the stability and prosperity of the global economy.
In the future, we look forward to seeing more countries join this process and jointly promote the reform and development of the global monetary system.
With the positive actions of countries such as China and Russia and the increasing vigilance of the international community against the dollar, the hegemony of the dollar may eventually decline. However, this process will not be smooth sailing and will require the joint efforts and wisdom of countries around the world.
In this global "currency war", every country is a participant and a beneficiary. Let us work together to make greater contributions to the stability and prosperity of the global economy.