As the epidemic continues, “money printing” continues
Since the outbreak of the new coronavirus in the United States, the scale of U.S. fiscal stimulus measures has reached US$5.2 trillion in just one year. , equivalent to 25% of the total nominal GDP of the United States in 2020, a record high. However, in order to reverse the intensifying epidemic situation, the new leader of the United States still chose the path of “printing money”.
On March 12, the United States launched an economic rescue plan of up to 1.9 trillion U.S. dollars, mainly to help vulnerable groups and companies tide over the difficulties; on March 31, the United States launched another 23,000 U.S. dollars A major infrastructure construction plan worth billions of dollars is aimed at rebuilding America’s infrastructure, as well as boosting employment and boosting the economy; more than that, the US media recently revealed that the United States is planning to introduce an economic relief bill focusing on education and medical care. Aid funds amount to US$2 trillion.
The United States is printing money at such a speed that the whole world will eventually pay the bill. Therefore, many countries have also accelerated the process of de-dollar trade settlement.
Countries promote “de-dollarization”
According to CCTV News 4 It was reported on March 2 that Glazyev, member of the Integration and Macroeconomics Committee of the Executive Committee of the Eurasian Economic Commission, said during the committee’s video conference that in order to ensure that the five major member states of the organization: Russia, Kazakhstan, Belarus, Kyrgyzstan and Armenia have It is necessary to increase the scale of local currency settlement and accelerate the pace of de-dollarization.
Glazyev pointed out that in the past 10 years, the status of the US dollar has declined sharply in international settlement business, with its global share falling from 80% to just over 50%. Currencies with great potential, such as the euro and the renminbi, have taken advantage of the trend. It is reported that more than 50% of Sino-Russian trade has given up settlement in US dollars, and is further accelerating its shift to settlement in RMB, Russian rubles and euros.
In addition, the de-dollarization of trade settlements among the five major member states of the Eurasian Economic Union is also accelerating. Statistics show that if we put aside U.S. dollar-based energy trade such as petrodollars, more than 70% of trade between Russia and five other countries bypasses the U.S. dollar and is settled in local currencies.
According to news from the Russian Satellite News Agency on the evening of April 5, Russian Deputy Foreign Minister Alexander Pankin said in an interview that countries in the Asia-Pacific region are currently switching to The willingness to use non-USD currencies as a method of settlement is high, and at the same time, African and Latin American countries have also shown strong interest in the topic of “de-dollarization”.
Russia has been at the forefront of the world in the field of de-dollarization and has plans to jointly promote it with 22 countries. Pan Jin pointed out that Russia, the other four countries of the Eurasian Economic Union and the other 14 countries of the CIS are jointly accelerating the de-dollarization, and relevant dialogues with the other four BRICS countries are also actively carried out.
Currently, many countries such as the United Kingdom and Japan are already planning for their own currencies under the new financial system. According to data from the Bank for International Settlements, more than 30 countries are actively developing their own digital currencies, and China is one of the fastest growing countries.
What impact will it have on textile people?
Reduce the risk of exchange rate fluctuations
In the past, most of the foreign trade done by textile people was settled in US dollars. The time for settlement of foreign exchange, and there are many risks in exchange rate fluctuations between transaction and settlement, which may make textile people make more money, but it may also turn some orders from making money to losing money.
For textile companies, fluctuations in exchange rates are not a good thing. Only a relatively stable exchange rate is most suitable for companies to quote and settle payments. Once they choose to de-dollarize, they will do it in RMB. If settled, the risk of exchange rate fluctuations can be significantly reduced.
Possibility of reducing imported raw material inflation
The United States will “print money” indefinitely until a certain amount is reached , is bound to introduce systemic inflation to the world. This year’s Spring Festival has just passed. It is because of systemic inflation and the partial recovery of the market that the growth momentum of various raw materials has exceeded expectations. Although the recent growth of polyester chemical fiber raw materials has encountered a ceiling , but many chemical raw materials still retain the momentum of price increase, and the cost of dyes has increased significantly.
Judging from the recent news, the United States has introduced bills to print money one after another, each amounting to a trillion dollars. This really makes countries all over the world feel real. Inflation risk. For textile companies, reducing the use of U.S. dollars among countries actually reduces the possible impact on raw material prices caused by the “water release” of the United States.
Avoid other risks
A friend of the editor once had an affair with Iran The client had a lot of business dealings, but after the United States imposed large-scale sanctions on Iran a few years ago, the business could not be done because the United States directly froze Iran’s foreign exchange reserves at that time, and at that time there was no other alternative. , I can only regretfully give up on the customers there and lose a lot of money.
When the United States keeps printing money and…��When sanctions continue to be imposed on some countries around the world, the risks contained in the US dollar continue to increase. More and more countries are aware of this problem and are working hard to make changes. </p
