For example, our country was the largest holder of US debt in the past, and now it has less than US$1 trillion in US debt. Japan has sold more than US$100 billion in US debt this year.

The current international trade settlement is basically based on US dollars as settlement center . Because in the past, the US dollar was anchored and linked to oil and gold.

But in the past two years, many countries have been selling U.S. bonds. For example, our country was the largest holder of US debt in the past, and now it has less than US$1 trillion in US debt. Japan has sold more than US$100 billion in US debt this year.

So how much is the settlement share of the US dollar now? Why did most countries use US dollars as settlement currency in the past?

What is the current trade settlement share of various countries?

The international currencies include euro, yen, US dollar, RMB, etc. Why do you choose the US dollar as the main settlement currency in the world?

This has to start with Bretton Woods system after World War II. This meeting decided to use the US dollar as the settlement center. That is to say, many countries go international to do business, and basically use the US dollar as the settlement currency.

Recently, the settlement share of currencies in various countries is:

USD accounts for 39.92%

Euro accounts for 36.56%,

pound accounts for 6.3%

RMB accounts for 3.2%

Other shares are relatively small.

Our country accounts for only about 3% of the trade settlement share. At present, this share is still relatively small, which means that the only one that can compete with the United States is the euro.

shows that the US dollar accounts for the largest share of trade settlement in the world, but compared with the US shares of more than 40 in the past, the US's settlement share has decreased, but it still ranks first. Then the euro has become more and more competitive in recent years and can compete with the United States.

It can be said that half of the current trade settlement is occupied by the US dollar and the euro, and the British pound accounts for a small part. The share of RMB settlement still needs to be improved. Although the international status of the RMB is getting higher and higher, it still needs to be improved. After all, our country is the second largest economic entity in the world. This trade structure share does not match our trading volume, so the international status of the RMB still needs to be improved. Will the

Euro replace the US dollar?

So, since the euro can compete with the US dollar, can the euro really replace the US dollar and become the largest currency in the world? Although the euro also wants to do this, it is also constantly strengthening its trade settlement share and de-dollarization.

However, in recent times, the exchange rate of of the euro against the US dollar has depreciated to a ratio of 1:1, setting a new low in 20 years, making it an unprecedented time. 1 dollar can be exchanged for 1 euro, and 1 euro can be exchanged for 1 dollar.

This is simply unimaginable. In the past, 1 dollar would definitely not be able to exchange for 1 euro, but now the exchange rates of the US dollar and the euro are almost the same. It is beyond our imagination, so the euro wants to compete or replace the US dollar. It is not realistic at the moment. After all, the US dollar is still linked to oil and gold, and the US's strength is here.

de-dollarization or trend

Although the US dollar international settlement is now mainly settlement currencies, the market share is divided. In recent years, the US dollar status has not been too high, and de-dollarization is now a trend.

Even if the euro cannot compete with the US dollar, but if all currencies such as the euro, yen, and RMB are combined, the status of the US dollar will be weakened step by step, and now the US is not as trustworthy as in the past. If you hold a large amount of US dollars, what if the US doesn’t keep its promise one day? Like the previous conflict between Russia and Ukraine, the United States frozen Russia's 300 billion gold and foreign exchange reserves, which is a typical case.

plus now the US is in the state of stagflation. What is stagflation? inflation . The economic recession, the US's CPI index in June this year has reached 9.1%.

Maybe the United States has printed too much money in the past, so what if you hold a lot of dollars in your hands? Or what if the US really cheats on Russia one day?

In fact, the settlement status of the US dollar is getting lower and lower. Perhaps it can be seen from the market trends that the market share of the euro will soon be on par with the US dollar. In addition, the settlement status of RMB, Japanese yen and British pound is also gradually increasing, and de-dollarization has become a trend.

The international status of the RMB still needs to be improved

Currently, our country's RMB settlement share is only about 3%, while our country is the second largest economic entity in the world. In 2021, our country's GDP was US$17.7 trillion, ranking second, and the US GDP is US$23 trillion, ranking first. Since our country is the world's largest economy, our RMB trade settlement share is only about 3%, which is still too low.

But this data is released by the SWIFT agency. In addition, our country also has its own CIPS cross-border payment system, which covers 178 countries around the world. The RMB settlement share may be far more than 3%, which may be underestimated.

However, the international status of the RMB still needs to be improved. For example, in the field of oil and energy, more and more countries also like to use RMB to settle trade with us. For example, Russia and Saudi Arabia use RMB for settlement.

Why does the US have the hegemony of US dollar settlement? It is that the US dollar is now linked to gold and energy. Once the US dollar is decoupled from energy, the US dollar's status will be weakened.

At present, global trade settlements are monopolized by Europe and the United States, and the United States always like financial hegemony. In the past, the United States always used hikes and cuts hikes to harvest the wealth of other countries or buy the high-quality assets of other countries by at the bottom. I believe no country is willing to pay for the financial hegemony of the United States.

is now slowly is being used to in the international community. Since the recent period, most countries have sold US debts, and this is almost the same principle.

believes that as long as we continue to enhance our economic, technological and other strengths, the status of the RMB will gradually be improved.