Decision on the execution of the dollar! – Arabic RT

Experts believe that the dominance of the American currency over the world is coming to an end, as they expect the dollar to lose its position as the main currency used by countries in their reserves, which they considered a death sentence.

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A group of experts said they were confident that central banks around the world would reduce their holdings in US currency, noting that the European currency's share of global reserves had risen by 20.26 percent. in the second quarter of 2018, its highest level since the end of 2014.

"The current status of the dollar as a major reserve currency allows the US economy to be away from external shocks, which will have negative consequences, especially for the states," said Linda Goldberg, Vice President of the Federal Reserve Bank of New York, one of 12 federations of the US Federal Reserve. The United States, if the dollar loses its dominant role. "

At first glance, nothing threatens the US currency. "The dollar has broken records, with major currencies reaching their highest level in 30 years," said financial expert Olph Lindell, a specialist in the study of foreign exchange markets.

Nevertheless, the situation will probably change in the near future as the greenback sinks into a downward spiral and the value of the euro will fall by 40% over the next five years.

At the same time, US investment bank JPMorgan said the decline would begin by the end of the year and that the dollar could not reverse this trend.

In addition, some experts rule out a gradual decline, but expect it to be sudden and dramatic. According to Ray Dalio, founder of the world's largest hedge fund, the US currency will collapse at some point, unable to bear the brunt of the US's huge budget deficit.

The expert believes that the huge deficit will deter foreign investors from buying US government bonds, which will result in growth rates of these bonds that will negatively impact the dollar exchange rate.

Source: "Novosti"