Yuelong Zhang The impact of monetary policy based on the principles of dedollarization and national sovereignty on the economic security of China

Abstract

The policy of multipolarity of geopolitical centers of influence on the world stage, initiated by China and Russia, is transforming the world financial system towards abandoning the dollar as the main global means of payment and settlement and requires constant monitoring and analysis of the current and future situation of the consequences of changes in geopolitics and the financial system. The object of research is the global financial system. The subject of the study is monetary policy based on the principle of national sovereignty and increasing the role of national currencies as an international means of payment and settlement. From the perspective of economic security within the framework of modernizing monetary policy, everything points to the impossibility of simultaneously controlling the exchange rate, the level of interest rates and freedom of capital movement. The Chinese authorities will likely seek partial control of each of these aspects depending on the geopolitical situation, that is, partial control of all three components will be realized together, and the shift in focus from the exchange rate to interest rates will usher in a new era in the country's politics.