U.S. dollar will play less dominant role within the next decade, Jeffrey Sachs predicts.
The renowned economist listed a few factors for the diminishing status of the greenback such as its use as a political weapon by Washington, the introduction of currencies like the digital yuan, and America’s shrinking share of the global economy.The role of the U.S.
Speaking at an online session of the latest Annual Columbia China Summit on Friday, Sachs noted that the international payment system is currently based on the dollar, with up to 60% of foreign trade settlements conducted or denominated in the U.S. fiat, and around half of currency reserves based on it.At the same time, the U.S. share of the global economy is around 15%, in purchasing terms. So the role of the dollar is far larger than the role of the U.S. economy, Sachs explained.
Quoted by the Chinese Xinhua news agency, Jeffrey Sachs also pointed out that with the U.S. turning its currency into a political weapon, by confiscating foreign exchange reserves of Russia, Venezuela, and Iran, many countries don’t want to keep their money in dollars anymore. He elaborated: They don’t trust the United States and they think the U.S. is going to confiscate their currency, especially if they get in some kind of foreign policy disagreement with the United States.The economist further remarked that the current role of the U.S. currency is largely due to the dollar-based commercial banking system as the payments are usually settled through commercial banks.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NBA play-in tournament: Chicago Bulls head to Toronto to play the Raptors on WednesdayThe Chicago Bulls will face the Toronto Raptors in the first round of the NBA play-in tournament on Wednesday.
Read more »
Warriors play Trail Blazers: Game determines if dubs will head to playoffs or play-in tournamentSunday's game will determine whether the Warriors make it into the playoffs or the play-in tournament.
Read more »
Commercial real estate: Goldman Sachs challenges Wall Street consensusMost of Wall Street is panicking about commercial real estate – but Goldman Sachs says there's little chance it triggers a financial crisis
Read more »
29 stocks to buy with underrated earnings: Goldman SachsInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Ex-cop, a former prison cellmate of Jeffrey Epstein, convicted for murdering 4 men | CNNA former New York police officer and cellmate of disgraced financier Jeffrey Epstein was found guilty Thursday of killing four men in 2015, the US Attorney for the Southern District of New York announced.
Read more »
Ex-police officer, former cellmate of Jeffrey Epstein convicted of murdering 4 men in 2015The man was convicted of killing four men and burying their bodies in a mass grave in 2015.
Read more »