USD Won’t Lose Reserve Currency Status Easily – Kriptoworld

According to Morgan Stanley, one of the major American financial services providers, the USD will remain the world’s leading reserve currency because it has no serious challengers.

Experts stressed that the Chinese yuan, which many see as a potential rival to the dollar, is currently underperforming and has little chance of beating the greenback.

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The USD may be weak, but nothing else is stronger

The dollar’s reserve currency status is likely to remain because there are currently no currencies that seriously threaten that position.

Morgan Stanley said in a report published on April 18 that potential challengers such as the Chinese yuan are not yet ready to compete with the dollar.

Therefore, financial institutions have no choice but to continue to settle in dollars.

The current situation of the US dollar is increasingly criticized due to the level of US debt and geopolitical tensions.

Some argue that the US government is using the dollar as a “weapon” and this is encouraging those looking for alternatives.

The common currency of the BRICS is yet to come

In addition, the situation of the dollar is further complicated by the fact that many of the BRICS members support the creation of an alternative reserve currency, but have not yet determined when this will happen.

At their last major meeting, there was a heated debate over which currency should be used for trade transactions instead of using a jointly issued money.

Although many believe that the Chinese yuan will topple the USD, many analysts say that China is not very interested in using its own currency as a reserve currency.

This is cited because China has strict capital controls, which makes it difficult to export large sums of money from the country.

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For now, the dollar rules

Although there are some signs that various financial institutions have already started to diversify and move away from the dollar, according to the US investment bank, this will not topple the dominance of the dollar.

Nevertheless, we can see occasional weakening due to cyclical market changes and other factors such as the world political situation.

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