British media: A single reserve currency that is incompatible with a multipolar world. The US dollar will lose its dominant position. The US dollar is incompatible with the US dollar
On August 29th, the Guardian reported that the US dollar, as a single reserve currency, is out of place in a multipolar world and its dominant position will not last forever.
The report states that the fight against inflation in the United States is not yet over, and the Federal Reserve may further raise interest rates. Considering the status of the US dollar as the world's major reserve currency, the actions of the Federal Reserve will not only affect the United States, but also the lives of people in countries and regions outside the United States. Commodities such as oil are priced in US dollars, and if the US dollar appreciates, countries borrowing in US dollars may see their repayment amounts soar.
The report states that the financial hegemony of the United States has not been widely welcomed, for example, one of the motivations for Europe to create the euro is to use it as a reserve currency to compete with the US dollar.
US Treasury Secretary Yellen expressed concern about the long-term consequences of financial sanctions as a tool of US foreign policy, believing that over time, such actions may weaken the hegemony of the US dollar. The report states that Yellen's concerns are correct, as a single, omnipotent reserve currency is incompatible with a multipolar world, and the challenges facing the US dollar are imminent.