According to Paul Gruenwald, the chief economist at Standard and Poors Global (S&P), the US dollar is losing its status as the global reserve currency.
Speaking at a conference in London, Gruenwald mentioned that the dollar no longer has the same level of influence it once had.
The US’ sanctions on Russia
The US’ strict sanctions on Russia have resulted in other nations seeking alternative currencies for trading purposes, as well as an increase in gold reserve rebuilding. This has led to a fragmentation around the edges.
The economist said the following:
“We’ve got other things happening outside of the dollar world.”
During the discussion, Gruenwald pointed out the increasing use of the Chinese yuan in international trade and the attractive financing options provided by Chinese banks such as the Asia Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB).
The NDB was established by the economic coalition of BRICS, comprising of Brazil, Russia, India, China and South Africa.
“The U.S. (dollar) will continue to be a leading world currency, (but) it will no longer be the dominant world currency.”
In recent news, Paul Ryan, a former House Speaker, expressed concern over the US government’s growing debt and its potential impact on the greenback’s status as the global reserve currency.
He warned that the country is heading towards a debt crisis, which could have a detrimental effect on the dollar’s dominance as the world’s leading reserve currency.
New Bitcoin price prediction is out
We have recently received an update on the predicted price of Bitcoin. To learn more about this, please read the latest reports provided below.
As of now, BTC is experiencing a decline and is currently valued at $30,311.
According to an analyst who accurately predicted the end of Bitcoin’s 2021 bull market, the cryptocurrency is expected to experience a significant increase in price, but only after a temporary decrease.
