Africa -China Review Africa -China Cooperation and Transformation
Published: September 28,2023
By Chen Zi
Cartoon by Tan Xiguang
For a long time, the United States has been abusing its dollar hegemony, aggressively adjusting its monetary policy, and constantly causing market turmoil while shifting its own crisis and reaping global wealth.
Since the end of World War II, the U.S. has gradually established the dominance of the U.S. dollar. The dollar remains the world’s largest reserve currency. According to data from institutions such as the International Monetary Fund, in the third quarter of 2022, the U.S. dollar accounted for nearly 60 percent of global foreign exchange reserves.
The U.S. dollar hegemony and the irresponsible monetary policy pursued by the U.S. Federal Reserve have continuously exacerbated global economic risks, with the wealth ultimately falling into the hands of the U.S.
Since March 2022, the U.S. Federal Reserve has been aggressively raising interest rates, with 11 rate hikes and a total increase of 525 basis points. This has led to a sharp appreciation of the U.S. dollar, significant depreciation of various other currencies, and intensified inflation, striking a heavy blow to other countries, especially emerging economies and developing countries.
