Financial changes! The dollar loses "trust", Biden will pay for arbitrariness, and the economic landscape changes
In March this year, the United States triggered a financial crisis, when the collapse of Silicon Valley Bank and Silicon Valley Bank in the United States, followed by a banking crisis in Europe, and the bankruptcy of Credit Suisse and Deutsche Bank, which plunged global finance into uncertainties.
And the culprit of this series of consequences, according to outside analysis, is the US authorities under Biden and the Federal Reserve, after the chain reaction, the Federal Reserve began to raise interest rates violently.
Last year, the United States made several decisions to raise interest rates, and until March 2022, the federal ** interest rate was 0-025%, and now it has increased to 475%-5%, continuous interest rate hikes have become one of the main reasons for the banking crisis.
Such a large upheaval has also made the dollar increasingly unreliable, after ** reported a large amount of foreign capital flowing into banks such as HSBC in Hong Kong, many foreign investors began to think that the West is no longer as safe as China.
If the previous ** reports were only for reference, the good news now confirms that the market position of the dollar has indeed begun to decline.
According to Bloomberg, in March, the renminbi's share of China's cross-border ** hub surpassed the dollar for the first time, reaching 48 percent, while the dollar fell from 83 percent in 2010 to 47 percent in March this year.
This means that China's dependence on the dollar is decreasing, and the renminbi reached a new milestone in March of this year, the same month that the United States fell into the financial crisis.
The increase in the proportion of RMB use shows that the degree of dependence on RMB across borders is increasing, which is also the result of Biden's arbitrary administration, and the result is that the reliability of the United States in the international ** is greatly reduced.
If we choose to pay in US dollars, the instability of the US dollar will have a greater impact on cross-border **, while the RMB will not be greatly affected and will be more stable in the overall measurement of the value of goods.
Of course, in addition to the reason why the dollar is becoming more and more unreliable, there is also a reason why the whole world is invariably beautifying the dollar.
Since the beginning of this year, a number of countries and regions have announced that they will use the renminbi as a settlement currency, which is comparable to the formation of a non-military alliance.
Therefore, in the economic field, more and more people are on the side of the yuan, for example, Argentina has now announced that it will use the yuan to pay for goods imported from China, and Brazil has reached an agreement with China to stop using the dollar as an intermediate currency and start trading directly with the yuan.
In addition to Argentina and Brazil, the two recently announced countries, many other countries have also started trading in yuan in recent months, including Saudi Arabia, Iran, Iraq and others in the Middle East. A large number of Asian and ASEAN countries have chosen to use the renminbi to conduct directly with China**.
A collective reversal in such a short period of time, with multiple countries and regions concentrating on de-dollarization, is an extremely rare change in history, and the reason for this, as I mentioned earlier, is the United States under Joe Biden and the increasingly untrustworthy dollar.
The United States abuses the hegemony of the US dollar in the global economic market and arbitrarily initiates sanctions against other countries, which also indirectly damages the credibility of the US dollar in the global financial market.
This is the case in the United States, the so-called Western spirit of contract, which is completely different from person to person and very flexible. When making a heavy choice, the position of Westerners changed faster than anyone else, abusing the hegemony of the dollar, abusing the payment and settlement system, and attacking other countries at will.
Seeing the true face of the United States, imagine which country would not be afraid, so in this case, many countries with dollars have felt the crisis.
And the renminbi became these countries"Safe haven"After all, China is a country that is generous, and the RMB is the most reliable in its hands, and you can buy everything you want, so more and more countries are willing to accept the RMB.
In the short term, the dollar's position in the world is still hegemonic, but its position is being eroded to a certain extent, but in the long run, the United States is losing the advantage of the dollar as a global currency, because the United States' credibility in the international community has collapsed.
Behind the credit of a country's currency is the level of strength of the country, and now the RMB is more and more recognized in the world, it is precisely because China slowly has this strength, and China will become the real guardian of credit in the future!