British media: Trump's military strike on Iran ("Operation Epic Wrath") has intensified the international community's perception of the United States ignoring international law and global norms, accelerating a gradual but historic shift away from the dollar's dominance. Despite strong U.S. economic growth and soaring stock markets, the U.S. dollar has depreciated 7% over the past year on a trade-weighted basis.
The share of the U.S. dollar in central bank foreign exchange reserves has dropped from 71% in 2001 to 57% in the fourth quarter of last year. The article points out that the United States is increasingly using its financial dominance as a geopolitical weapon ("weaponized interdependence"), prompting countries to seek alternatives. The BRICS nations are pushing for financial links that bypass the United States, while the European Central Bank is also strengthening liquidity arrangements.
Research also shows that the "convenience yield" of U.S. Treasury bonds is declining. Given that U.S. debt is expected to reach 130% of GDP within five years, the weakening of U.S. dollar hegemony will eventually come at a heavy cost to the United States.
Original source: toutiao.com/article/1858467769578499/
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