USD, international transactions, global economy, dollar dominance, currency reserves, quantitative easing, Federal Reserve, BRI, global liquidity, financial markets
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The United States dollar remains the primary currency for international transactions, allowing the US to finance its significant debt.
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[...] International Financial Management - The United States Dollar Volume of Transactions/Fluctuations Over Time b. Volume of Transactions/Fluctuations Over Time Volume: (12 years every 3 years) (BIS research) Compared to other partners: European Union, Canada (CAD) and China (Chinese Yuan) Evolution of volume vs Volume of GDP References b. Volume of transactions/Fluctuations over time The BRI has used the term international liquidity to refer to access to financing on international financial markets. The BRI's Global Liquidity Indicators (GLI) follow non-bank borrower credit, covering both bank financing and bond financing on financial markets, specifically dollar-denominated, euro-denominated, or Japanese Yen-denominated financing to external debtors outside respective monetary zones. [...]
[...] The role of the dollar as the world's main reserve currency is assured in the short and medium term. The dollar continues to dominate foreign exchange reserves, commercial bills, and currency transactions worldwide. All potential rivals, including the euro, have limited capacity to compete with the dollar in the immediate future. BRICS members have diverted their attention from a common currency and turned to new cross-border payment systems in order to create a more multipolar financial system. China has led this effort by accelerating the development of the cross-border interbank payment system (CIPS), a renminbi settlement mechanism. [...]
[...] During the health crisis, the country's domestic production relaunch plan was 480 billion euros (for 1.4 billion index). The recent economic relaunch plan (2024) is only 150 billion dollars3. The Middle Kingdom wants to establish itself as a reliable and attractive alternative to the management of excess deposits in the Asia-Pacific region and is taking concrete measures in this regard (ongoing monetary trade agreements with countries in the region). This would mean the long-term expulsion of the dollar from a region that concentrates two-thirds of the world's GDP4. [...]
[...] As for Canada, it was over $600 billion that was spent. All these amounts are acquired through debt from central banks that massively buy government debt securities. These injected sums are decoupled from the real economy and especially exceed the real wealth production in a disproportionate manner. Since 1945, the United States have used the dollar and its status as a currency of international transactions to settle their external deficit and finance (support) their significant debt (currently estimated at $35,800 billion)1 dollars2 so it is 11% of the world's debt). [...]
