Scholars call for accelerating de-dollarization

Economic experts said that it's necessary to pursue de-dollarization to avert negative impacts brought by U.S. dollar hegemony.

Their remarks came after the U.S. Federal Reserve on Wednesday left interest rates unchanged at a 22-year high of 5.25 percent to 5.5 percent as recent consumer data indicates that inflation continued to pick up.

The U.S. dollar is controlled by the Federal Reserve, which primarily adjusts the liquidity of the U.S. dollar according to the economic conditions and operations of the United States itself, without fully considering the impact on other economies.

Tang Yao, an associate professor with the Department of Applied Economics of the Guanghua School of Management of Peking University, pointed out that lowering dependence on the U.S. dollar is necessary to avoid the spillover effect from the decision-making of the Federal Reserve.

"De-dollarization is feasible and necessary in the long run. The reason is that if most countries in the world rely too heavily on the U.S. dollar as a financing currency, the spillover effects of the U.S. Federal Reserve's policies will be too significant, because the Federal Reserve does not take into account the economic situations of other countries when making decisions. Therefore, to solve this problem in the long run, it is necessary to lower dependence on the U.S. dollar," he said.

"We cannot put all our eggs in one basket. Other countries are also exploring some bilateral settlement methods, and the underlying result is that trade will not be able to rely solely on one currency. In the future, it is very possible for the U.S. dollar to lose its anchoring role in global commodity pricing," said Lu Zhe, chief macroeconomist of Founder Securities Co. Ltd.

Wang Qing, chief macroeconomics analyst with Golden Credit Rating International, said emerging markets should enhance cooperation to accelerate the global "de-dollarization" process.

"Against the background of economic globalization, it is imperative for emerging market countries to strengthen cooperation and gradually establish an international settlement and payment system that can constrain or circumvent the abuse of dollar hegemony by the United States," said Wang.

Scholars call for accelerating de-dollarization

The death toll of south Brazil rainstorm has hit 151, while another 104 people remain missing, Brazil's Civil Defense agency said Thursday.

Since torrential rains began to lash the country's southernmost state, Rio Grande do Sul, on April 29, floods and mudslides have left some 600,000 people homeless.

According to the Civil Defense agency's latest report, over 2.28 million residents have been directly impacted by the disaster in the state, which borders Argentina and Uruguay, and is a center of Brazilian agribusiness, as well as the top rice producer in Latin America.

Brazilian President Luiz Inacio Lula da Silva visited the area on Wednesday, speaking to those taking refuge in shelters, and pledged more aid for displaced families so they can buy new homes.

The government has set up an extraordinary secretariat in Porto Alegre, which has the ranking of a ministry, to coordinate relief and recovery efforts through February 2025.

In addition to government efforts, statistics show that more than 15,000 volunteers from all over Brazil have contributed to disaster relief in the region.

At a relief supply distribution center in Porto Alegre, capital of the state of Rio Grande do Sul, about 2,000 volunteers have been working in morning and evening shifts to help local authorities receive and distribute donations from all over the country.

Guilherme Miller, a local English teacher, became one of the volunteers after the rainstorms forced the closure of his school.

"Any person who has one hour to help can come here, can help. It's my duty to come here and work every day as much as I can," said Miller.

In a shelter in the hardest-hit city of Canoas, more than 260 people have lost their homes and there is a shortage of medical personnel. Fabio, a doctor of a private hospital in Porto Alegre, took the initiative to provide medical services at the shelter.

"I'm doing my best to help with both medical care and nighttime emergencies. This weekend, 200 volunteer doctors and nurses from Santa Catarina will be here to help," said Fabio.

Death toll from south Brazil's rainstorm hits 151