Воскресенье, 14.04.2024, 05:12
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I. Watch the video and fill in the gaps in its sript below

For decades, world trade has been dominated by the US dollar, giving the US government power and influence over every country, including China, which is not immune to the dollar's hegemony in the global economy. However, a recent development is that the US dollar has in value to its highest level in years while other , such as the pound, euro, Japanese yen, and even the Chinese renminbi, have reached new lows. According to a Bloomberg article, the strong dollar is causing globally, but China and Russia have a long-term plan to reduce the dollar's dominance and allow other to replace it as the global reserve currency.

In 1999, the US dollar had a 71% market share amongst global reserve , but in the past 10 years, it has dropped to 59%, and if China and Russia's plan works in the next 10 years, we might see a new global reserve currency . However, what is this master plan of China and Russia to reverse the trend of US dollar dominance, and what are the best strategies to your investments during this unprecedented time of geopolitical conflict?

To better understand this China-Russia strategy, we must first understand why the US dollar is so powerful and why it has monopoly status amongst reserve . The first reason is that the US dollar is a currency of trust. If two random countries, such as Peru and Nigeria, want to trade with each other, they would prefer to use a more stable currency for international trade, and the US dollar is the most stable and less , thereby allowing both countries to feel more comfortable doing business. Nearly 80% of world trade is conducted in US dollars.

The second reason is that most countries prefer US dollars is that it's the only currency that allows buying oil from Saudi Arabia. In 1945, the US government made a strategic deal with the Kingdom of Saudi Arabia to Saudi Arabia in exchange for selling its most in US dollars.

The final reason is the Swift banking system created after World War II that now dominates all worldwide financial . Currently, Swift is used in over 200 countries and 11,000 institutions around the globe.

However, between Russia, China, and the United States are escalating rapidly. China is with the US for its support of Taiwan, and Russia is now the most sanctioned country in the world. Since Russia has been sanctioned by the US, Russia is not able to use its US dollar reserves, and at the same time, most Russian companies and banks have been removed from the Swift network, limiting their abilities to trade with other nations. The West believes that they can continue to sanction and cut off Russia from the world, forcing Putin to give up his war on Ukraine.

However, Russia has one strategic advantage that is making this scenario difficult to come true: Russia has extreme over Europe and the world as one of the world's largest oil and gas producers. Even though Saudi Arabia and other countries are using dollars to sell oil, Putin is forcing countries to buy rubles to oil and gas from Russia. So despite European countries uniting together and standing for Ukraine in this ongoing war, many of them have had to their pride and purchase Russian rubles to keep their economies running.

In conclusion, China and Russia's plan to reduce the US dollar's dominance and allow other currencies to it as the global reserve currency is a long-term strategy that will take time to . However, given the geopolitical and conflicts between the US, China, and Russia, it is essential to have a investment strategy that can your investments during these unprecedented times.

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II. Word Matching Exercise

# Word Enter the letter of the defenition Definition
1 Unparalleled power a  A well-thought-out plan or course of action
2 To surge in value b  Financial dealings or exchanges
3 To cause havoc c. Power that is unmatched or unequaled
4 A precious commodity /td> d  Something that is highly valued or prized
5 Transactions e To put a plan or system into action
6 A tension /td> f  state of strained relations or unease between individuals or groups
7 A leverage over g The advantage or control one has over others
8 To swallow one's pride h To accept something humiliating or embarrassing
9 To purchase i To come into or become known
10 To implement  
j To protect or defend against potential harm or danger
11 A sound policy k To cause chaos or confusion
12 Volatile l Subject to rapid and unpredictable changes
13 To emerge mTo buy or acquire something
14 Safeguard
n To rapidly increase in value

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III. Translate into English

1. США — единственные, кто имеет возможность влиять на глобальные финансовые рынки посредством контроля над мировой резервной валютой, что дает им значительные геополитические преимущества
2. США — единственные, кто получает выгоду от сеньоража, получаемого от выпуска основной мировой резервной валюты, что позволяет им эффективно «облагать налогом» остальной мир за счет инфляционного эффекта создания новых денег
3. США — единственные, кто может использовать мировую резервную валюту в качестве инструмента внешней политики, налагая санкции или другие экономические ограничения на страны, не выполняющие их пожелания».
4. США — единственные, кто может позволить себе роскошь иметь постоянный торговый дефицит, не сталкиваясь с теми же последствиями, что и другие страны, поскольку доллар США пользуется таким высоким спросом на международном уровне.
5. Владение мировой резервной валютой (которой в настоящее время является доллар США) дает Соединенным Штатам ряд преимуществ в мировой экономике, таких как возможность выпуска долговых обязательств по более низким процентным ставкам, привлечение иностранных инвестиций и более легкое осуществление международных операций. Кроме того, страны по всему миру держат доллары США в своих валютных резервах, что помогает поддерживать ценность и стабильность валюты.

IV. Match two parts to get the most logical sentences

1.Owning the world reserve currency provides the United States with several advantages in the global economy. a. since the US dollar is in such high demand internationally, which maintains its high interest rate and thus its purchasing power
2.The USA are the only one to have the luxury of being able to run persistent trade deficits without facing the same consequences as other countries, b.which allows them to effectively 'tax' the rest of the world through the inflationary effect of creating new money.
3.The USA are the only one to have the power to influence global financial markets through their control of the world reserve currency, c. which gives them significant geopolitical advantages such as, for instance, the ability to impose sanctions or other economic restrictions on countries that do not comply with their wishes and replace local govenment with ones loyal to the US
4.The USA are the only one to be able to use the world reserve currency as a tool of foreign policy, d. such as the ability to issue debt at lower interest rates, attract foreign investment, and make international transactions more easily. Additionally, countries around the world hold US dollars in their foreign exchange reserves, which helps to maintain the value and stability of the currency.
5.The USA are the only one to benefit from the seigniorage income that comes from issuing the world's primary reserve currency, e. giving them significant geopolitical avantages.

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