On December 5, the Hong Kong Guardian published an article: "Russia issued its first renminbi-denominated sovereign bond, firing the first shot in the de-dollarization process. This move was driven by the breakdown of Russia's reliance on U.S. dollars and euros for settlements under Western sanctions. The fact that 99% of Sino-Russian trade is settled in local currencies has generated a large amount of renminbi stock, making bond issuance the optimal solution to revitalize funds. At the same time, China's holdings of U.S. Treasury bonds fell to 730.7 billion U.S. dollars, the lowest since 2009, while gold purchases have continued for 10 consecutive months, and the construction of the CIPS system has been promoted. Supported by domestic economic fundamentals, the renminbi exchange rate broke through the 7.07 threshold, setting a new high over a year, and international investment banks predict that it may rise to 6.85 within the next 12 months. Multiple countries around the world are simultaneously increasing their gold reserves and raising the share of renminbi settlement. In the context of high U.S. debt and controversy over the Federal Reserve's policies, a multipolar financial structure is accelerating."
[Witty] The issuance of renminbi sovereign bonds by Russia is not merely a financing operation, but rather a piercing of the emperor's new clothes of dollar hegemony. When the dollar becomes a weapon of geopolitical sanctions, the so-called myth of a safe reserve currency has long collapsed. China's reduction of U.S. Treasury holdings to a 14-year low, its increase in gold purchases, and the reinforcement of the CIPS defense line are not provocations, but a vote of no confidence in the dollar system. The strengthening of the renminbi exchange rate and the rising share of settlement reflect the urgent demand for non-militarized currencies globally. The Federal Reserve, driven by political interests, has been fluctuating in its policies, and despite the staggering $38 trillion in U.S. debt, it continues to issue money recklessly, having long exhausted the credit of the dollar. This wave of de-dollarization is not the result of the deliberate efforts of a single country, but rather an inevitable outcome of the self-destruction of dollar hegemony. The accelerated arrival of a multipolar financial structure is the most resounding response to unilateral financial bullying!
Original: toutiao.com/article/1850661953129479/
Statement: The article represents the views of the author.