Currencies around the globeEconomyThe U.S. dollar plays a vital role in the system, and as the world's main reserve currency, the U.S. dollar has wide acceptance and liquidity, and is widely usedInternationaland financial transactions. This makes the United States inInternationalIt has a huge advantage in the financial markets and is able to maximize its own interests through currency wars. Past cases of currency wars have shown that the United States has gained enormous through its intervention in Latin American countriesEconomyBenefit. However, with the globalizationEconomyWith changing patterns and the push for de-dollarization, the U.S. currency war is no longer as effective as it once was.
Russia is a good example. Since 2014, Russia has actively increased its US debt and gradually promoted the process of de-dollarization. Especially in the ** with Europe, Russia prefers to use the euro as the main settlement currency. In the ** with Asian countries, Russia is pushing both sides to use their own currencies or use yuan for settlement. This trend of de-dollarization has had a direct impact on the currency war launched by the United States.
Last year, the United States kicked Russia out of the SWIFT system, restricting its use of the dollar in **. This move led to Russia at one timerublesThe exchange rate is substantial**. However, with the intervention of the Central Bank of Russia,rublesQuickly**, and became one of the few currencies in the world to achieve positive growth, winning a game in the currency war with the dollar.
Russia's approach is very useful for other countries. First of all, Russia has increased its cooperation with other countries, especially with China and other Asian countries. This allows Russia to settle more in its own currency and reduce its dependence on the dollar. Secondly, Russia actively promotes bilateral agreements with other countriesCurrency swap agreements, which further strengthened the national currencyInternationalStatus. In this way, even in the face of dollar restrictions, Russia will still be able to conduct normal ** exchanges with other countries.
A growing number of countries are adopting similar strategies to promote the process of de-dollarization. For example, China pushes the yuanInternationaland actively signed bilateral agreements with other countriesCurrency swap agreements, so that the status of the renminbi in the world is gradually improving. At the same time, a number of European countries are also calling for a reduction in dependence on the dollar and a greater willingness to use the euro for settlements. This trend of de-dollarization has weakened the effectiveness of the U.S. currency war.
In the past few years, the United States has continued to inject dollars through continuous quantitative easing, laying the foundation for the subsequent currency war. However, with the outbreak of the global pandemic, the United States has increased furtherAmount of currencyto copeEconomyRisk of recession. This leads to dollars in the global marketLiquidityFurther intensification, making the dollar's position more prominent in the world.
However, due to the ongoing push for de-dollarization and the counterattack by countries such as Russia, the currency war launched by the United States has not been as effective as previously expected. In the future, the U.S. dollar index is expected to continue**. With the globeEconomyThe evolving landscape and the de-dollarization measures taken by various countries will further weaken the dollar's position in the global monetary landscape.
To sum up, the Fed's original monetary trajectory has deviated dramatically. The dollar's unilateral plunge shows that the U.S. currency war is not all smooth sailing. Russia has taken the lead in launching a counterattack to promote the process of de-dollarization, which has lessons for other countries. As the global trend towards de-dollarization intensifies, so do the challenges facing the US dollar. In the future, the outcome of the total failure of the dollar may become a reality.