U.S. dollar hegemony poses risk to global economic, financial stability

Cartoon by Ma Hongliang

The U.S. has long utilized U.S. dollar supremacy in the international monetary system to transfer its own crises to the world and reap global wealth. This U.S. dollar hegemony poses a genuine risk to global economic and financial stability.

Since last year, the U.S. Federal Reserve has been aggressively raising interest rates. As a result, the U.S. dollar has significantly strengthened, leading to the devaluation of several currencies globally. This has resulted in capital outflows and caused certain countries to experience currency or debt crises.

In recent years, the U.S. has used national security as an excuse to impose unilateral sanctions, exercise long-arm jurisdiction, and promote decoupling. It has introduced policies such as the Inflation Reduction Act and the CHIPS and Science Act, which disrupt market rules and the international economic and trade order, undermine free trade, and harm the sustained and prosperous development of the world economy.

As the world's largest economy, the U.S. should have contributed to the recovery and prosperity of the global economy. However, the country only focuses on its own interests, disregards its responsibilities as a major power, disrupts the international economic and trade order, and undermines global financial stability, posing a huge risk to the world economy.

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U.S. uses dollar hegemony to reap global wealth