Core Viewpoint - The future of the international monetary system is likely to evolve towards a structure where a few sovereign currencies coexist, compete, and balance each other [1][4] Group 1: Evolution of the International Monetary System - The share of the euro in global foreign exchange reserves has increased to around 20%, second only to the US dollar since its inception [1] - The international status of the renminbi has steadily risen, becoming the second-largest trade financing currency globally after the 2008 financial crisis [1][2] - Historical shifts in dominant currencies, such as the Dutch guilder and the British pound, indicate that the status of international currencies is not fixed and can change with international dynamics and national competitiveness [2] Group 2: Impact of US Policies - The US has engaged in protectionist measures and created barriers that disrupt global supply chains, undermining long-term global trade stability [2] - The recent depreciation of the US dollar, with a decline of approximately 9% from January to June, reflects the instability of the dollar-centric global monetary system [1][2] Group 3: Opportunities for Other Currencies - The current situation presents a significant opportunity for the euro to strengthen its international position, as noted by the European Central Bank President [3] - The establishment of the Cross-Border Interbank Payment System (CIPS) with foreign institutions marks a step towards enhancing the use of the renminbi in international transactions [3] Group 4: Future Monetary Landscape - The international monetary system is expected to transition towards a multipolar structure, with the US dollar, euro, and renminbi playing significant roles [4] - Sovereign currency issuers must enhance fiscal discipline and financial regulation to mitigate risks and ensure stability in the global monetary system [4][5] - Coordination of monetary policies among major economies is crucial to avoid unintended policy conflicts and to manage the spillover effects of monetary policies [5]