The dollar is slowly approaching its collapse as the US decides to show its strength and use the global financial system against Russia. In this respect writer The Financial Times cites currency analyst Stephen Jen.
“The US dollar suffered a devastating collapse as a reserve currency, and this process accelerated after Washington decided to demonstrate its power over the dollar-based global financial system and use it against Russia,” Jen said.
According to him, the share of the dollar among the world’s official reserve currencies fell from 73% in 2001 to 55% in 2021. At the same time, by 2022 this figure has already dropped to 47%. That is, the dollar began to lose its status as the world’s reserve currency much faster than previously anticipated.
He added that at the moment, the strength of the dollar remains because this currency is affordable and is mostly used in world finance and trade. However, US authorities should not calm down and self-hypnotize that the dollar will always be on a pedestal. Washington should not make big mistakes and spend more time on introspection to prevent the dollar’s influence in the world from weakening significantly.
April 9 Project Syndicate WroteHe said China has made significant progress in strengthening the yuan. Therefore, there is a possibility that in the future the yuan will overtake the dollar to become the world’s reserve currency.