Financial encyclopedia

Global "dollarization" plans abound.

RMB Cross-border Settlement Payment System (CIPS) is a cross-border settlement system developed by the People's Bank of China. By the end of last year, there were 1,360 participating institutions covering 109 countries or regions.

Petroleum RMB

China proposed to the Middle East Gulf countries to settle oil and gas trade in RMB, and Saudi Arabia, the largest oil producer, also indicated that it was open to settlement in currencies other than US dollars.

South American Dollar (SUR)

The South American common currency mechanism jointly promoted by Argentina and Brazil, the new currency "SUR" (meaning "South") is still in the initial stage, and it is expected to become the second largest common currency after the euro in the future.

Mir payment system

Officially operated by Russia, the payment and settlement system was launched in 2015. "Mir" means "world and peace" in Russian, and it has business in Turkey, United Arab Emirates and other places.

Gold stable coin

Russia and Iran are reported to be organizing a stable currency based on gold reserves as a means of settlement for third-party trade.

Bric currency

The five countries (Brazil, Russia, India, China and South Africa) are also studying the establishment of a BRICS currency trading system. The new currency intends to use gold and rare earth as the consideration of issuing currency. There is an opportunity to shake the global dominant position of the US dollar and realize "dollarization".

Central banks around the world have substantially increased the proportion of gold reserves.

According to the quarterly report of the World Gold Council last Friday, the global central banks' purchases of gold reached a record level of 1,136 tons last year, and China's gold buying tide lasted for five months. Since November, the country has bought 120 tons of gold, and its total gold reserves have risen to 2,068 tons. China is building an international reputation for the RMB.

In the long run, more and more countries will join the front, which will make the dollar lose its dominance, and we need to take precautions as soon as possible.

It can also be noted that the trend of dollarization will not disappear soon, which also provides long-term support for gold.