- The former chairman of Goldman Sachs Asset Management speculates that the global economic powerhouses, China and India, have the potential to disrupt the US dollar’s world reserve currency status.
- The shift from the dominance of the US dollar is inevitable but remains unpredictable in terms of when and how it will occur.
Lord Jim O’Neill, ex-chairman of Goldman Sachs Asset Management, recently stated in an interview with RT that the sustainability of the US dollar’s reign as the world’s primary reserve currency is likely temporary. He equates the changing nature of currency supremacy with the eventual eclipsing of the economies backing them.
“The most frequently used currency worldwide will ultimately belong to the world’s most significant economies. Therefore, the notion that the dollar will perpetually reign supreme is somewhat implausible,”
O’Neill suggests. He admits, however, that the timing and exact trajectory of the dollar’s potential dethronement remain ambiguous. Such discussions regarding the dollar’s demise have been recurrent over decades, yet the event itself hasn’t materialized.
Known for creating the acronym BRIC, denoting the economic amalgamation of Brazil, Russia, Iran, and China, O’Neill has witnessed the evolution of this group with the addition of South Africa, now referred to as BRICS. This coalition signifies an effort to sidestep the financial dominance of the US, a prospect O’Neill believes could be realized if China and India, two of the largest nations within the emerging world, successfully align their agendas.
>> Buy Bitcoin quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with BTC now. Visit Website <<
This isn’t the first instance where the dollar’s decline has been forecasted. Such predictions have been intermittently appearing over the years, albeit with varying intensity. As a historical precedent, the pound sterling’s dominance in world financial markets extended far beyond the point when the UK economy’s share in global GDP considerably reduced.
The transition away from the dollar’s predominance seems inevitable. However, if China and India, the only two emerging nations boasting populations over a billion, manage to reach strong consensus on key matters, it could indeed accelerate the winding down of the dollar’s supremacy.
Best Crypto Exchange for Everyone:
- Invest in Bitcoin (BTC) and 70+ cryptocurrencies and 3,000+ other assets.
- 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
- Copy top-performing traders in real time, automatically.
- Regulated by financial authorities including FAC and FINRA.
2.8 Million Users