Core Insights - The share of the US dollar in global foreign exchange reserves has dropped to 56.32%, the lowest in nearly 30 years, and has not exceeded 60% for eleven consecutive quarters [1][3] - The International Monetary Fund (IMF) attributes this decline primarily to exchange rate fluctuations, stating that the actual drop in dollar share is only 0.13 percentage points when adjusted for these factors [3] - There is a significant shift in investment strategies, with central banks reducing their purchases of US long-term securities by 94% in the second quarter, and instead opting to buy US stocks [5][10] Investment Trends - The US stock market has rebounded by 11% in the second quarter, contributing an estimated $189.4 billion in valuation gains to global dollar reserves [5] - Central banks are increasingly favoring gold, with global official gold reserves surpassing US Treasury holdings for the first time, reaching $3.86 trillion, which accounts for 23.56% of total global reserves [13] - The demand for gold has hit record levels, with purchases exceeding the average of the past decade by 41% [13] Currency Dynamics - The share of "other currencies" in global reserves has increased by 1.42 percentage points since 2022, indicating a trend of countries bypassing the dollar in trade settlements [16][20] - The Chinese yuan has gained prominence, becoming the fourth largest payment currency globally, with over 80 countries including it in their foreign exchange reserves [20] - The ongoing trend of "de-dollarization" is reshaping the global financial landscape, moving towards a more diversified currency system [21][23] Future Outlook - The shift from a dollar-dominated system to a multi-currency framework is expected to enhance flexibility and stability in the global economy [23] - The process of transitioning away from dollar reliance will be gradual, but the trend towards a diversified monetary system is becoming increasingly clear [23]

Core Viewpoint - The 2008 international financial crisis revealed inherent flaws and potential risks in the US dollar-dominated international monetary system, prompting emerging economies represented by BRICS nations to seek systemic reforms, including currency internationalization, to mitigate various risks. However, due to differences in economic structure, openness, and financial systems, Russia, India, Brazil, and South Africa exhibit varying degrees of enthusiasm and methods for currency internationalization. This article analyzes the processes and characteristics of these countries' currency internationalization to provide insights for advancing the internationalization of the Renminbi [1][3]. Group 1: Russia's Ruble Internationalization - Russia has strategically prioritized the internationalization of the ruble to enhance the global competitiveness of its financial system, especially in the context of the Ukraine conflict, linking it to sanctions mitigation and economic independence [4][6]. - The ruble's internationalization process can be divided into four phases, starting from the post-Soviet era, where Russia aimed to restore the ruble's international status through reforms and establishing a market-based exchange rate system [4][5]. - Following the 2008 financial crisis, Russia actively promoted the ruble's international use through regional and bilateral agreements, with a focus on the Eurasian Economic Union and increasing ruble trade settlements [6][7]. Group 2: India's Rupee Internationalization - India's approach to rupee internationalization has been cautious, evolving through two main phases, with a focus on promoting foreign trade and better integration into international markets [8][9]. - Initially, India adopted a gradual and cautious strategy, emphasizing bilateral invoicing and settlements in rupees, while only fully liberalizing international investments in 2014 [9][10]. - Post-Ukraine conflict, India has become more proactive in promoting rupee internationalization, establishing direct settlement mechanisms and engaging in regional cooperation frameworks to enhance the rupee's global acceptance [10]. Group 3: Brazil's Real Internationalization - Brazil's strategy for the internationalization of the real is characterized by a lack of a defined timeline, focusing instead on enhancing international and regional trade shares [11][12]. - Brazil implemented earlier reforms in exchange rate policy and capital account liberalization, transitioning to a floating exchange rate system in 1999 and promoting capital account openness [11][12]. - The internationalization of the real is facilitated through regional cooperation, particularly within the Southern Common Market, promoting trade settlements in local currencies and exploring the possibility of a unified currency among member states [12]. Group 4: South Africa's Rand Internationalization - South Africa has not set explicit goals or timelines for rand internationalization, but emphasizes the currency's stability and convertibility as crucial for economic support [13][14]. - The rand's internationalization has been primarily focused on regional usage, leveraging South Africa's influence in Africa to expand the currency's reach [13][14]. - Following the end of apartheid, South Africa's economic policies shifted towards market liberalization, enhancing the rand's trading volume and market activity [13]. Group 5: Insights and Implications - The currency internationalization efforts of these countries have shown some success, with increases in global foreign exchange trading shares for the rupee, real, and rand from 2010 to 2022 [15]. - Economic strength and stability are foundational for currency internationalization, with challenges such as inflation and political instability affecting the global acceptance of these currencies [16]. - The process of currency internationalization is also a de-dollarization effort, with a focus on regional expansion as a strategic approach to reduce reliance on the US dollar [18].

Core Viewpoint - The United States has officially imposed a 50% tariff on certain Brazilian products, which has led to a positive response in Brazil's financial markets, with the real appreciating against the dollar and the Ibovespa index rising [1] Group 1: Market Reaction - The Brazilian real strengthened by 0.78%, closing at 5.4631 reais per dollar [1] - The Ibovespa index increased by 1.04%, closing at 134,538 points [1] Group 2: Government Response - Brazil's Ministry of Foreign Affairs has formally requested consultations with the World Trade Organization (WTO) regarding the U.S. tariff measures, stating that the U.S. is "openly violating its core commitments" to the WTO, while expressing willingness to negotiate [1] - President Lula indicated he would only engage in dialogue with U.S. President Trump if there is a "genuine willingness for dialogue" from the U.S. side [1] - Finance Minister Fernando Haddad announced support plans for affected industries, including credit support and increased government procurement, and confirmed a video meeting with U.S. Treasury Secretary Yellen next week [1] Group 3: Economic Context - In July, Brazil recorded a trade surplus of $7.075 billion, which, despite a year-on-year decline of 6.3%, exceeded market expectations of $6 billion [1] - The market's optimism regarding potential interest rate cuts by the Federal Reserve in September has also boosted global investor risk appetite, contributing to the rise in Brazilian assets [1]