By the end of the decade, the dollar may lose its dominant position in the foreign exchange market, as happened after the Second World War with the main world currency at that time – the British pound, expert Alexander Losev expects this.
“We see a downward trend in dollar settlements and a decline in dollar-denominated central bank reserves. For example, the share of the dollar in the international reserves of central banks has decreased to less than 58%,” said Alexander Losev, general manager of Sputnik. Capital Management.
He continued: “Non-dollarized and non-Western economies are growing (apart from the dollar and Western economies) and the BRICS countries have already surpassed the G7 countries in their contribution to global GDP. and the political hegemony of the dollar begins to crumble. We are already moving towards a multipolar world.
And about the future of the dollar, Losev said: “I think that on the horizon of 5-7 years, before the end of the decade, on this horizon, the dollar will lose its leading position in international settlements, because the countries of the world, which have a lot of dollar debt, are extremely vulnerable to global shocks. a financial system based on the American currency, and these countries will work to switch to settlements in national currencies, and the dollar may face the same fate as the British pound after the Second World War, which was once the main currency in the world.
The expert added that the huge amount of debt that Britain was mired in World War II and the reluctance of foreigners to own British assets led to the end of the pound’s dominance and the transition to the dollar.
A few days ago, Russian billionaire and businessman Oleg Deripaska, in a post on his Telegram app, suggested that the US currency would lose its position as the dominant currency in the world in the next five years.
Source: Prime