Economist Predicts End of US Dollar Dominance as More Countries De-Dollarize
The chief economist at S&P Global has predicted that the U.S. dollar “will no longer be the dominant world currency.” Highlighting the diminishing influence of the USD, he pointed out that an increasing number of countries are de-dollarizing, noting that the Chinese yuan is growing in popularity as a trading currency.
Economist Expects US Dollar to Lose ‘Dominant World Currency’ Status
S&P Global’s chief economist, Paul Gruenwald, shared his prediction about the end of the U.S. dollar’s dominance at a conference hosted by the ratings firm in London on Tuesday.
The U.S. dollar “doesn’t have quite the pull it used to … There’s a fragmentation around the edges,” the economist stated, elaborating:
We’ve got other things happening outside of the dollar world.
The implementation of aggressive U.S. sanctions, including the freezing of Russia’s reserves worth around $300 billion last year, has prompted numerous countries to de-dollarize and increase the use of national currencies in trade settlements.
The S&P Global economist highlighted a trend of countries moving away from the U.S. dollar, exemplified by the rising utilization of the Chinese yuan in international trade. Moreover, he pointed out that development banks based in China offer cheap financing options, including the Asia Infrastructure Investment Bank and the New Development Bank (also known as the BRICS Bank).
While noting that the U.S. dollar “will continue to be a leading world currency,” the economist stressed:
It will no longer be the dominant world currency.
Meanwhile, the BRICS economic bloc is working on a common currency that many believe will erode the dominance of the U.S. dollar. Rich Dad Poor Dad author Robert Kiyosaki said on Tuesday that the U.S. dollar “will die” citing the BRICS nations’ alleged plan to launch a gold-backed currency. A study by asset management firm Invesco found that central banks are reducing their U.S. dollar holdings while planning to increase their Chinese yuan exposure. Renowned investor Jim Rogers has cautioned that the U.S. dollar’s value will erode further.
Do you agree with the S&P Global economist that the U.S. dollar will no longer be the dominant world currency? Let us know in the comments section below.
Source: Bitcoin.com
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