xi's moments
Home | From the Press

US uses dollar hegemony to reap global wealth

People's Daily Online | Updated: 2023-09-26 08:31

Cartoon by Tan Xiguang

For a long time, the United States has been abusing its dollar hegemony, aggressively adjusting its monetary policy, and constantly causing market turmoil while shifting its own crisis and reaping global wealth.

Since the end of World War II, the US has gradually established the dominance of the US dollar. The dollar remains the world's largest reserve currency. According to data from institutions such as the International Monetary Fund, in the third quarter of 2022, the US dollar accounted for nearly 60 percent of global foreign exchange reserves.

The US dollar hegemony and the irresponsible monetary policy pursued by the US Federal Reserve have continuously exacerbated global economic risks, with the wealth ultimately falling into the hands of the US.

Since March 2022, the US Federal Reserve has been aggressively raising interest rates, with 11 rate hikes and a total increase of 525 basis points. This has led to a sharp appreciation of the US dollar, significant depreciation of various other currencies, and intensified inflation, striking a heavy blow to other countries, especially emerging economies and developing countries.

Global Edition
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349