{"id":20003,"date":"2023-04-19T03:58:12","date_gmt":"2023-04-19T03:58:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-dollars-reserve-currency-status-eroding-at-alarming-pace-economics-bitcoin-news\/"},"modified":"2023-04-19T03:58:12","modified_gmt":"2023-04-19T03:58:12","slug":"us-dollars-reserve-currency-status-eroding-at-alarming-pace-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-dollars-reserve-currency-status-eroding-at-alarming-pace-economics-bitcoin-news\/","title":{"rendered":"US Dollar’s Reserve Currency Status Eroding at ‘Alarming Pace’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Asset management firm Eurizon SLJ\u2019s strategists have warned that the erosion of the U.S. dollar\u2019s global reserve currency status has accelerated at an alarming pace in recent years, especially following the onset of the Russia-Ukraine war. They noted that the USD has declined 8% in one year, which is \u201cequivalent to 10 times the average annual pace of erosion in the USD\u2019s market share in the prior years.\u201d<\/strong><\/p>\n

Strategists on the U.S. Dollar Losing Its Global Reserve Currency Status<\/h2>\n

Eurizon SLJ Asset Management says the U.S. dollar experienced a significant decline as a preferred reserve currency in 2022 despite its continued dominance in international trade. The firm\u2019s strategists Joana Freire and Stephen Jen wrote<\/a> in a note Monday:<\/p>\n

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We believe the erosion of the dollar\u2019s reserve currency status has accelerated in recent years at an alarming pace, especially since the start of the Ukraine war.<\/p>\n<\/blockquote>\n

\u201cThe dollar suffered a stunning collapse in 2022 in its market share as a reserve currency, presumably due to its muscular use of sanctions\u201d following the outbreak of the Russia-Ukraine war, the strategists wrote. \u201cExceptional actions taken by the U.S. and its allies against Russia have startled large reserve-holding countries.\u201d They further noted that Russia became largely isolated from the global financial system after it invaded Ukraine last year, leading the Kremlin to rely more on the Chinese yuan.<\/p>\n

The strategists added that the greenback\u2019s share of global reserves has decreased from about two-thirds in 2003 to 55% in 2021 and 47% in the following year, emphasizing:<\/p>\n

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This 8% decline in one year is exceptional, equivalent to 10 times the average annual pace of erosion in the USD\u2019s market share in the prior years.<\/p>\n<\/blockquote>\n

Nonetheless, the Eurizon SLJ strategists believe that the USD \u201cwill likely continue to enjoy dominance as an international currency for a while longer.\u201d Citing data from the Triennial Central Bank Survey conducted worldwide by the Bank for International Settlements (BIS), published in October last year, they pointed out that the dollar\u2019s share of currency turnover increased from 85% in 2010 to 88% in 2022.<\/p>\n

Do you think the U.S. dollar will lose its status as the world\u2019s reserve currency? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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