The renminbi, which once played an unknown role in the international currency war, is now finally shining on the world currency stage. 7.12, this number not only represents a victory, but also a turning point in history.
But is it all a coincidence?In other words, what's the story behind this?We have to wonder why the dollar strategy is making the world pay for successWhat kind of games and competitions are hidden behind this?
1. The rise of the renminbi.
The rise of the renminbi can be described as a well-orchestrated economic epic. This process will not happen overnight, but will be the inevitable result of China's gradual economic strengthening. It's a long and strategic journey.
Since the end of the 20th century, China has played an important role in the global economy. With the implementation of reforms and the deepening of policies, China has not only become the "factory of the world", but also has grown rapidly in terms of economic aggregate, becoming the second largest economy in the world. All this paved the way for the internationalization of the renminbi.
In the 21st century, China's rapid economic growth has attracted the world's attention. At the same time, China** began to implement a number of measures to improve the international status of the renminbi.
The People's Bank of China gradually relaxed its control over the RMB exchange rate, shifting from an exchange rate system strictly pegged to the US dollar to a more flexible floating exchange rate system. This change has not only increased the market adaptability of the renminbi, but also made international investors pay attention to this emerging currency.
Another major initiative is to promote the use of the renminbi in international** and investment. China** encourages more bilateral** to be conducted in renminbi by signing currency swap agreements with other countries.
This not only reduces dependence on the US dollar, but also increases the international liquidity of the RMB. With the implementation of the Belt and Road Initiative, more countries have begun to accept and use the RMB for transactions.
In the international financial market, the status of the renminbi has also improved. In 2016, the International Monetary Fund (IMF) announced the inclusion of the renminbi in the Special Drawing Rights (SDR) basket of currencies, which is an important recognition of the international status of the renminbi. This move will not only enhance the international reputation of the renminbi, but also mean that more national and international institutions will hold and use the renminbi.
At the same time, China has continued to promote the opening up and reform of its financial markets. From the ** market, bond market to the financial derivatives market, the entry of foreign investors into the Chinese market has been deepening. This not only provides opportunities for foreign investment, but also enhances the international influence of the RMB.
The rise of the renminbi is a gradual process, which is a direct reflection of China's growing economic strength and international status. In the global monetary system, the renminbi is gradually playing an increasingly important role and has become one of the global currencies that cannot be ignored.
2.Dollar hegemony.
The U.S. dollar occupies the highest position in the global economy. This hegemony is not intentional, but comes from the combined embodiment of the economic, political, and military power of the United States, as well as the intelligent design of a series of international financial systems.
We need to go back to the post-World War II Bretton Woods system, which was the starting point of dollar hegemony. In 1944, representatives of 44 countries met in Bretton Woods, New Hampshire, USA, and decided to establish an international monetary system based on a fixed exchange rate system.
In this system, the national currency is pegged to the US dollar, which in turn is pegged to **. This decision actually established the central position of the dollar in the global monetary system. Although the U.S. ended direct dollar exchange in 1971**, the dollar's centrality has not wavered.
The economic power of the United States is the material basis of the hegemony of the dollar. As the world's largest economy, the U.S. economic policies, market performance, and credit profile have a significant impact on global financial markets.
Whether it is international**, financial investment or international debt, the dollar plays an irreplaceable role for the role. Most of the world's international transactions are denominated in US dollars, which requires other countries to hold large amounts of US dollars as foreign exchange reserves.
The control of the US dollar policy by the United States** and the US Federal Reserve has also strengthened its dominance in the international financial system. By setting interest rates and controlling currencies, the United States can influence not only its own economy, but also global financial markets. Especially during the international financial crisis, the subtle adjustment of the US dollar policy played an important role in the global economic recovery.
The combination of international politics and military power is also an important support for the hegemony of the dollar. The global military presence and political influence of the United States ensure the global spread of economic interests. As the "petrocurrency", the U.S. dollar also plays an important role in global energy**.
The United States** has further strengthened the dollar's international standing through economic and financial sanctions against other countries.
As the world's reserve currency, the U.S. dollar is heavily held by central banks around the world. This is not only because of the strength and stability of the US economy, but also because of the depth and liquidity of the US bond market. U.S. Treasuries are considered one of the safest assets in the world, which increases the demand for dollar assets in other countries.
The global hegemony of the US dollar is a complex system engineering that involves economic, political, military and other aspects. It is not only a reflection of the economic power of the United States, but also the result of years of development of the international financial system.
Although currencies such as the renminbi have gradually emerged on the international stage in recent years, the dominance of the US dollar will remain difficult to shake in the short term.
Conclusion. When the yuan broke through 7At the 12th mark, we are witnessing the arrival of a new era: a new global economic pattern of multi-currency coexistence, competition, and cooperation. This not only marks the growth of China's economic power and the success of internationalization, but also heralds a major change in the global monetary system.
In the process, although the US dollar still dominates, the rise of the RMB will certainly add new impetus and possibilities to the world economy.
We can see more challenges and opportunities in the currency wars of the future. The rise of digital currencies, the formation of a multipolar monetary system, and the deep integration of the global economy will have a significant impact on the existing international financial order. In this shift, not only ** and central banks, but also ordinary people and market participants will play an important role.
This historic breakthrough of the renminbi is not only a symbol of China's economic strength, but also an important milestone in the development of a diversified and balanced global monetary system. This is not only a victory for digitalization, but also a sign of the times, heralding the formation of a new pattern of global economic cooperation and competition.