An eminent American economist, Nouriel Roubini, has suggested that the dollar could gradually lose its status as the world’s dominant reserve currency within the next decade, a view highlighted by a Financial Times profile. The piece frames his forecast against a backdrop of shifting global dynamics and rising geopolitical competition between the United States and China.
Roubini argues that a growing rivalry between the two powers will drive the emergence of competing reserve currencies on the international stage. In his assessment, this division will not be limited to symbolic status changes but could reshape how nations store and settle large-scale foreign exchange reserves.
To illustrate his point, the economist pointed to recent moves by China and Saudi Arabia, which have conducted some transactions in yuan. He notes that such experiments may become more common as countries seek alternatives to the dollar for substantial cross-border payments and holdings, potentially accelerating the transition to a multi-currency reserve system.
His forecast is blunt about timing: the decline of the US dollar’s preeminence as the principal reserve asset is likely to unfold over the coming ten years. The argument rests on structural shifts in global finance, including the rise of digital currencies and evolving payment ecosystems that could challenge dollar-centric channels.
Beyond traditional currencies, Roubini also points to the growing relevance of digital means of settlement and payment platforms in shaping future reserve choices. In parallel conversations, observers have noted that the emergence of nontraditional instruments could complicate the currency mix that central banks depend on for stability and liquidity. This broader discourse underscores the need for nations to diversify reserves and develop clearer frameworks for international payments, risk management, and monetary policy coordination [Source: Financial Times].
Separately, Esther Pereira dos Santos, who previously worked with the BRICS Research Group at the University of São Paulo, described the idea of a single BRICS currency as a logical step within the bloc’s evolving economic strategy [Attribution: BRICS Research Group, University of São Paulo].