The dollar’s status as the world’s dominant currency is faltering, the chief economist of S&P Global Ratings said on Tuesday.
Following tough sanctions such as the freezing of hundreds of billions of dollars worth of Russia’s foreign exchange reserves by the United States last year, many countries have begun conducting some trade in currencies other than the dollar and repatriating their gold reserves.
Paul Gruenwald, chief economist for Asia Pacific at S&P Global Ratings, said the dollar is “less attractive than it used to be”.
Gong Huade cited examples of countries that are now avoiding the use of the US dollar: “There are other things happening outside the US dollar world, and trade in Chinese yuan is increasing.”
Gong Huade said that the US dollar will still be the world’s main currency, but it will no longer be the world’s leading currency.