On the marathon track of the financial market, the renminbi is like an Asian warrior, with perseverance and wisdom, overcoming many obstacles and gushing out the vitality that amazes the world.
In the past month, the renminbi has risen by 2,000 points, announcing its determination to forge ahead to the world.
However, in the face of the same experience, the dollar is like a ship sinking in the wind and waves, struggling in the torrent of violent Fed interest rate hikes, trying to break through the current speed and sail to the other side. The tenacity and perseverance of the renminbi are also expected to reshape the image and pattern of the global economy.
Behind the renminbi's return to a new high, it is not only to position the rise and strength of China's economic development, but also to open a new page in the understanding of the global economic pattern.
We can't help but wonder if the acceleration of the renminbi** is just a flash in the pan, or a powerful torrent, and where will the hegemony of the dollar go?
In this regard, we must capture these key issues in this rapidly changing financial market and deconstruct the possible direction of the future economy.
The hegemony of the US dollar, as the world's largest economy, is almost a natural thing.
Since the post-World War II Bretton Woods conference, the dollar has been entrenched like a dragon around the world, with challengers succumbing to its feet.
However, as the storm of financial change grows more intense, and the massive migration of manufacturing overseas, the United States can no longer simply rely on the dollar to accumulate wealth.
The reason for the US dollar's interest rate hike has always been wrapped in attractive clothing, such as reducing inflation and improving economic efficiency, but in the context of the Ukraine crisis, the United States did choose to run outdoors, and the process of raising interest rates continued.
With the new round of interest rate hikes, the dollar has enjoyed the benefits of capital inflows, but at the same time put a huge load on the euro.
Since last year, the Fed's actions seem to have been given life, raising interest rates more than 10 times, and a surging force is undoubtedly expected to guide global funds to the United States.
The fearless power of the renminbi is marching towards a wider and bigger stage. When the door to the US dollar interest rate hike opened again, the RMB appreciated by 2,000 points, showing the world the invincible courage of New China.
This was not a short-lived victory, but part of a new trend that is shaping a sustained appreciation.
This trend is due to the fact that China is carrying out currency swaps with Saudi Arabia, Argentina, Germany, Russia, Iran and many other countries, and more and more countries are beginning to choose to use the yuan to conduct transactions with China.
In particular, it is worth mentioning that 80% of the Chinese and Russian countries have chosen to settle in RMB, which is enough to have a serious impact on the hegemony of the US dollar.
Standing in a complex and volatile global economic environment, many variables and uncertainties have undoubtedly brought more challenges to our path forward.
Will we see the RMB continue to strengthen and be on the path to appreciation?Where will the hegemony of the dollar go?While we are looking for answers, we must also look for measures that can actually improve the economic situation in order to cope with possible shocks.
Only in this way can we take every step steadily, gradually sail to the other side of the financial ocean, and write a new economic chapter for the future.