The battle against the US dollar continues. Check out the latest reports about this below.
De-dollarization goes on
According to JPMorgan, the de-dollarization trend is growing stronger as central banks across the globe divest their holdings of US dollars.
According to a recent report by Reuters, JPMorgan analysts Meera Chandan and Octavia Popescu have discovered that the dollar’s portion of foreign exchange reserves held by central banks has decreased to a historic low of 58%.
More than that, it is also important that we mention the fact that the trend towards de-dollarization is highlighted by the significant gold accumulation by central banks over the past five years.
According to Chandan and Popescu, gold’s proportion in reserves has increased from 11% to 15% in just five years. Recently, UBS, a leading bank, reported that central banks intend to collect 700 metric tons of gold valued at $48.74 billion this year.
This trend is attributed to geopolitical tensions and ongoing inflation, leading countries to avoid relying on the US dollar.
JPMorgan analysts stated the following:
“Some signs of de-dollarization are emerging.”
Chandan and Popescu also made sure to highlight the fact that the de-dollarization trend is likely to continue even though the US dollar is managing to maintain its “large footprint” in the settlement of global trade, as per the online publication The Daily Hodl.
China and India could trigger US dollar’s demise
According to the former chairman of Goldman Sachs Asset Management, two major global economies have the ability to challenge the US dollar’s position as the world’s reserve currency.
Lord Jim O’Neill recently gave an interview to RT, which is a Russian government-funded news outlet, in which he expressed doubt that the United States can maintain its USD hegemony for an indefinite period of time.
“Eventually, as we saw in the United Kingdom, the world’s most actively used currency will ultimately be that of that world’s most important economies. So the idea that the dollar will remain king forever is probably unlikely.”
