A teller counts US dollar bills at a bank in Qionghai, southern China’s Hainan province. Photo: Xinhua News Agency
U.S. Treasury Secretary Janet Yellen testified Tuesday before the House Financial Services Committee that one of her concerns is that U.S. financial sanctions will prompt more countries to take action on how best to protect the dollar’s international standing. said. The US dollar was not involved, VOA reported.
Yellen’s remarks highlighted growing concerns about the hegemony of the US dollar. Experts believe that the weaponization of the US dollar will reduce its dominance as the world moves towards local currency payments and accelerates de-dollarization policies. China and other countries are actively promoting local currency payments and multilateral cooperation, providing more options and possibilities for the global financial order.
In testimony before the U.S. House Financial Services Committee, Yellen said that the more the U.S. tightens sanctions, the more countries will look for ways to do financial transactions that don’t use the U.S. dollar, VOA reported.
For a long time, the United States has abused its dollar hegemony to transform domestic crises and expropriate global wealth by undermining the economic and financial stability and well-being of other countries. It is also used as a tool to isolate other countries from the dollar payment system and impose financial sanctions.
Zhao Qingming, a veteran financial expert based in Beijing, said the trend of de-dollarization has accelerated in recent years due to the imposition of US financial sanctions, with some countries no longer able to pay in dollars and looking for alternatives. He points out that there is a growing trend to explore he told the Global Times on Wednesday.
“This will have a certain impact on the international position of the US dollar. In the short term, the US dollar’s position should be stable, but over time, its position may weaken,” Zhao said.
Dollar hegemony has led other countries to seek ways to de-dollarize by diversifying foreign exchange reserves, establishing local currency payment mechanisms, and strengthening international cooperation.
Zhao said that China’s participation in this movement is not only to meet the needs related to the internationalization of the renminbi, but also to provide the world with more diverse options.
In June, Saudi Arabia joined the Central Bank Digital Currency Initiative for International Trade, which could set the stage for more local currency payments and less dependence on the US dollar in oil trade between China and Saudi Arabia. .
According to a report by Xinhua News Agency, Maldivian Economic Development and Trade Minister Mohamed Saeed announced in April that Maldivian citizens will be able to pay for imports in Chinese yuan to achieve the government’s goal of diversifying payment currencies away from the US dollar. He acknowledged that he would soon have a choice.
According to a report by the World Interbank Financial Communications Association, the Chinese yuan in May maintained its position as the fourth most active currency in global payments by value for the seventh consecutive month, with a share of 4.47%. It became.
