A growing movement among nations from China to Argentina to challenge the dollar's dominance of global trade and investment flows has attracted much attention of late. But the greenback's status as the world's reserve currency faces no real threat for the foreseeable future, according to Allianz.
Much has been made of a rival currency one day usurping"King Dollar" – with Beijing pushing for more yuan-based trade, the BRICS countries planning a currency backed by gold, and Argentina using the Chinese currency for bank accounts and making debt payments. "The dynamics affecting the US dollar's role as reserve currency are far more intricate than official statistics suggest and any material decline in the role of the US dollar in global finance will take much longer than current headline news on de-dollarization insinuate," they said in the note.
The greenback's role in private-sector transactions has remained virtually unchanged, with only slight adjustments based on foreign-exchange turnover, bond issuance by non-financial corporates and SWIFT payments, according to Allianz.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dedollarization at risk in Argentina as USD zooms 5,000% vs. pesoDedollarization is under threat in Argentina after the US dollar zoomed 5,000% versus the peso over the past decade
Source: BusinessInsider - 🏆 729. / 51 Read more »