USEUROPEAFRICAASIA 中文双语Français
Home / Business

Moving toward a multi-currency system

By Zhang Monan | China Daily | Updated: 2018-09-14 07:38

Even a decade after the global financial crisis, the world economy has not fully recovered because the structural problems that precipitated the crisis have not been entirely eliminated. Complicating the matter is a series of policies the United States has adopted to shift trade and financial risks.

The US dollar has dominated the global financial system due to historical reasons. The exchange rate system that pegged other currencies to the dollar served as the cornerstone of the Bretton Woods system. However, the Bretton Woods system itself collapsed after the US terminated convertibility of the dollar to gold in 1971, ushering in the era of free-floating currencies and making the dollar a reserve currency.

But the Trump administration's protectionist and unilateral policies, together with the US' massive debts, have exposed economies to the risks of the free-floating dollar, prompting many countries to break away from the "US dollar regime" and shift toward a multipolar currency system.

Moving toward a multi-currency system

Today's Top News

Editor's picks

Most Viewed

BACK TO THE TOP
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US