Just over 20 years after its establishment, the euro has become the second largest currency in the world, posing a great threat to the dollar. According to previous data from the SWIFT organization, the euro accounted for less than 5% of payments at its peak and the dollar.
But there has been a noticeable change in recent data.
The share of US dollar payments continued to rise until it reached 46% at the latest level, which is also the highest level in the past 20 years.
On the contrary, the share of euros in payments has been declining, and it is close to falling below the 30% mark.
It is clear that the liquidation of the dollar against the euro has begun.
The combination of the dollar against the euro showed great power.
Through the conflict that broke out in Europe in 2022, the United States successfully took advantage of the situation and adopted a series of tactics that led to the violent turbulence and depreciation of the euro.
This process can be described as a well-orchestrated financial strategy aimed at weakening the euro and undermining the competitiveness of the European economy.
First, the United States has adopted sanctions against Russia, which have led to the rapid adoption of energy sources. Europe is highly dependent on Russian energy**, a move that directly hits the cornerstone of the European economy.
The surge in energy** has put heavy cost pressures on European companies, with many considering moving out of the eurozone and fleeing the eurozone with capital in search of a more stable market.
Second, the Fed keeps raising interest rates, driving down the euro's exchange rate.
As the dollar exchange rate rose, investors sold the euro in favor of dollars, forming a wave of selling of the euro. This has led to a continuous decline in the value of the euro, posing a huge challenge for the European economy.
Finally, the share of euro payments has dropped sharply as Russia no longer accepts transactions in euros. This is a fatal blow in the US strategy.
The last currency to be hit by the United States was the Japanese yen.
In the 80s of the last century, the Japanese economy attracted the attention of the world for its strong growth and innovation.
At that time, the Japanese proudly declared that they could buy the United States, which showed the strength of the yen.
However, the United States has taken a series of measures to force the yen to continue to appreciate through the Plaza Accord.
This appreciation of the yen led to the formation of an economic bubble in Japan. Japan's real estate and ** market are rapidly expanding, and assets** are soaring. People are investing like crazy, creating an illusory picture of prosperity.
However, this bubble eventually burst in the early 1990s, triggering a severe economic crisis.
The collapse of the yen has caused Japan's assets to fall to the bottom and the real estate market to collapse. The once-prosperous scene is quickly disappearing, businesses are closing, and unemployment is rising.
The crisis had a long-term impact on the Japanese economy, which fell into a prolonged downturn.
Since then, Japan has stepped out of the challenge to the dollar.
The dollar has always strengthened itself by hitting the second-ranked currency, but this blow to the euro is likely to be the final blow to the dollar.
Today, the global trend towards de-dollarization is in full swing, and countries are seeking to reduce their dependence on the dollar.
While the data shows that USD payments account for 46%, this figure actually masks a more complex picture, as more and more transactions are already appearing outside of SWIFT.
Some countries have stepped up their research and application of digital currencies, trying to achieve independence of payment and settlement through decentralized technical means.
The development of digital currencies offers new possibilities for de-dollarization, making cross-border payments more convenient and secure, while reducing dependence on the US dollar.
In addition, a number of international organizations are also promoting the process of de-dollarization, including the Asian Clearing Organization, ASEAN, the GCC, the BRICS, etc., not to mention the European Union, which is ready to re-emerge the euro.
Although the US dollar remains the world's most important reserve currency and international payment instrument, the global trend towards de-dollarization has become irreversible. The U.S. dollar has lost its irreplaceability in the past, and countries will continue to promote the development of diversified payments and settlements while pursuing economic independence and financial security.
Therefore, it can be said that the US dollar is at the end of its strong crossbow, and its global position will face more challenges and changes.
Does the U.S. want to liquidate other currencies?It may be that the dollar is waiting to be liquidated now.