Illustration: Chen Xia/Global Times
As the US Federal Reserve’s monetary tightening policy is set to wreak havoc and cause shocks across the global economy, there is increasing urgency for China, Russia, and other economies to step up cooperation to break the US dollar’s dominance in the energy market.
The dollar has been strengthening against the world’s other major currencies, and it has reached a level not seen in almost two decades. As the US central bank keeps raising federal funds rates to curb runaway inflation, the dollar is set to continue to appreciate significantly in the coming months.
In Europe, the euro has fallen below parity with the dollar, reaching its lowest level in 20 years. In Asia, the Japanese yen has been traded at around 140 per dollar, which nears a 24-year low. Sharp currency depreciations will bring more pain and risks for non-dollar economies, including the EU, Japan and others.
In the global energy…
