The UK-based organization made striking predictions about the future of the dollar in the light of recent developments.
In addition to the rise in global inflation, the deterioration in the balance of supply and demand turned the eyes to the US currency dollar.
The United States owes the world a net $18 trillion, or 73 percent of the country’s gross domestic product.
“The dollar may look strong, but its weaknesses are increasing”
This preceded past currency crises. news well beyond the 50 percent threshold.
on the future of the currency in question. “A post-dollar world is coming” The Financial Times, which included an article entitled “The currency may look strong, but its weaknesses are increasing.” said.
Investors are moving away from the dollar
In the article by Ruchir Sharma, it is explained that the American economy has grown significantly faster than other developed economies in recent years, but is preparing to grow more slowly than its peers in the coming years, “Investors tended to move away from the dollar.” expression was used.
“The impact of American sanctions on Russia shows how effective the United States is in a dollar-driven world.” the following observations were made:
“Not a single reserve currency, but blocks of money”
“This is inspiring many countries to step up their search for options. The next step is likely to be towards blocks of money, not just one reserve currency.
Southeast Asia’s largest economies pay each other directly, avoiding the dollar. Malaysia and Singapore are among the countries that have similar regulations with China. Central banks from Asia to the Middle East are establishing bilateral currency swap lines to reduce reliance on the dollar.
“Fundamental imbalances have bad consequences for the dollar”
The dollar seems to be benefiting from its safe-haven status, but investors are in no rush to buy US assets. This picture is not a vote of confidence for the US economy.
Fundamental imbalances have bad consequences for the dollar. The current account deficit in the US is close to the 5 percent threshold, which it has passed only once since 1960.
“Don’t be fooled by the strong dollar, the world is coming after the dollar”
The dollar share of foreign exchange reserves is currently at 59 percent. This is the lowest level since 1995. Although digital currencies appear battered, they remain the long-term alternative.”
On the other hand, the same article “So don’t be fooled by the strong dollar. The post-dollar world is coming.” complete with expressions.
