Topic: The End of "USD" as the World's Reserve Currency (Read 1322 times)

That's certainly true, mate. COVID-19 has partially destroyed the US economy as we know it. If the outbreak lasts for years, then the USD might lose its status as the reserve currency of the world. It'll be the biggest economic recession Americans have faced in history. I'm hoping that the US sees the light at the end of the tunnel with a COVID-19 vaccine. But if no vaccine is developed, expect this to be an ever-lasting crisis. While the traditional monetary system might fail due to COVID-19, crypto will not. Maybe governments in the mainstream world will use cryptocurrencies such as Bitcoin and Ethereum as a "hedge" against the ever-increasing inflation of traditional Fiat currencies? We're living in a period of uncertainty, so we cannot tell for sure what will happen in the future.

For now, the US is still the strongest economy in the world. There may be a long way to go before the USD collapses in its entirety. No matter if it's the USD, EUR, JPY or CNY as the reserve currency of the world, the economy will remain unchanged. After COVID-19, the recovery of the US' (and the world's) economy will be a slow and steady one. It might take decades before everything turns back to normal. Just my opinion

Looks like fear mongering to me

What ZeroHedge has perfected and made into an art in its own right. In the worse case scenario and assuming that the real mortality rate is close to or below 1% (which is a good assumption), we should also assume that it will ultimately kill around 3 million Americans. This is nowhere near enough to destroy an economy of over 300M people as more people die naturally every year (it's a simple math based on average lifespan), and still more so if we take into account that the virus mostly kills the weak and the old. Put differently, it is a typical case of natural selection which America will come out of stronger than before. Maybe, that was the plan from the outset of the outbreak (if we put our tinfoil hats on)

COVID-19 has completely destroyed the economy of the United States, if you read news articles on the internet unemployment
in the US is increasing.The US continues to print USD to save the economy, but all these events do not make the USD as a world
reserve currency replaced. Even Bitcoin is very difficult to replace the USD, because world trust in the USD is still quite high.

USD is still beyond strong and is not going anywere. I think ti will be stornger in future personally

I think that despite the mass destruction covid-19 has done to the US, it will still remain the # 1 economy/ the green back remains the worlds reserve currency.  Despite what's transpired, the US stock market has been resilient. I think compared to most economies it's simply so far ahead that losing that title would take more than this.  Keep in mind the sink of the US economy hurts others at the same time.  Still have most countries buying US treasury bonds, and continuing to trust of those.

Euro has done horrible things with its reserve assets, they do not respect capitalism or even fair accounting.   No auditor will sign the books of the EU for quite some time now.   To have a global standard based around a trading cartel that seeks to exclude others for their own benefit is not what I'd call a global reserve currency.
   Yuan is a national currency from a communist military dictatorship that neither respects the individual rights of people to retain value or even their lives intact, its not possible to have a global reserve currency from a regime that might well start the next world war with their ambitions to own the South China sea and all terrorities belonging to other countries.
  The only viable alternative I've heard of recently was via the IMF which is a division of the united nations.  This would be the SDR, already in operation since the 70's but not held by anyone outside of central banks and it includes all the suggested bodies like USA, China and EU but none have control but a proportion of its issue.   This was the original argument at Bretton Woods decades ago that allowing dollar to dominate global reserve would end in so much bias it leads to failure, we are seeing that future now.

The US government have the strongest economy in the world, and the currency USD is one it's pride. Letting the currency fall while another take it place as the world reserve currency is practically impossible. For it will mean a failure in governance. America will never allow that

in some ways I think the dollar is not surprising. Whenever the world economy looks more risky, investors tend toward the greenback. The increased dollar government comes even when the US government has taken the previous action, the government's economic outlook. funded by a deficit of large-scale expenditure, but the effect will not be drastic in my opinion in this corona disaster?. So this cycle begins to be less stable due to different government spending and responses.from my observation?

That's the right spirit

And everyone should put it into their pipe and smoke it. Well, the dollar may not have a constant value, of course, but it doesn't have to in the first place at all. What it has to, though, is to have America remain the dominating military and economic power in the world. As long as it remains that, the dollar will be strong, while its value can in fact be any. Under these circumstances, the dollar depreciation can even be considered an inflation tax levied upon the world

The fact is that the United States pursues such an international policy regarding international trade and lending to different countries that every country is forced to work with the dollar. Thus, the United States supported its national currency and it is valued quite high all over the world. but I read such information that in the countries of Asia and Africa there is a global shortage of dollar supply and therefore the United States is constantly printing new bills, and this creates very strong inflation. but nonetheless, as long as the United States is the real leader around the world, the dollar will have a constant and reliable value.

It is not about a strong currency as such

For example, the Swiss franc can already considered one such currency, but does it make Switzerland an economic superpower like the US? Unlikely, if you ask me. In different terms, it is the underlying economy and its strength that would turn its currency into a genuine competitor to the American dollar. Is there such an economy? The European Union comes pretty close but they are weak in other important aspects (e.g. in terms of military muscle)

It would be interesting to know which country in the world can issue such a strong currency so that it can become a competitor for the dollar. Since you write that this currency should appear soon, it means that it is not available now, and the state that should issue it already exists?

The term 'victory' was coined rather than usurped, illustrating how American negotiations for European countries before engaging in the second world war and making the dollar an international currency. France, which initially refused, finally agreed with the American offer.

If viewed from the resilience and see the dollar is still a stabilizer of the currencies of many countries and 58% of the country's foreign exchange reserves are still in dollars, then the collapse of the dollar means the economic collapse of all countries whose foreign exchange reserves are in dollars. We assume the dollar loses half its value, automatically the wealth of many countries in the world is halved. For America it is very easy to overcome the weakening of values, only need to print more dollars. But how will the effect be on other countries including China?

Some time ago I had read an article from an Indonesian military observer, about the dollar reset value which is one of the currency war strategies that might be done by America to maintain its hegemony. Dollar value is only 1/2 and debt is doubled, for countries with high trade surpluses, it is safe to eat, because there is multi-stream income, for countries with a trade balance deficit will certainly be more vulnerable (faster falling). One way to withstand the collapse of the economy is with large gold reserves, if not possible to reset the price of the dollar that is possible is to increase the price of gold.

Right now, we're in a high period of uncertainty. The USA may have a strong economy, but it might not last for long. The longer COVID-19 takes to disappear, the harder it'll be for the economy to recover. If the USD goes down the drain, it might become replaced by another national currency. It looks likely that either the Chinese Yuan or the Euro will become the world's next reserve currency. And the former has better chances of taking over the world's economy than the latter. After all, China is already testing the possibility of rolling its own CBDC. If the digital Yuan becomes the first CBDC in the world, it might rival the USD's status as the reserve currency of the world.

All the eyes are on the US right now, as it's the country that's been mostly affected by COVID-19. We'll have to wait until all of this ends, in order to determine the negative impact on the US economy by the outbreak. Then, the USD could either retain its position in the mainstream economy or all the other way around. USD or not, I think that the world's economy will remain relatively the same. Just my thoughts

I believe USA has a very strong economy but given the fact that we are all suffering from this pandemic and don't even know when will this end, i think USA might really be affected but will still be able to overcome this resistance until everything will be back to normal. USD dollar has a very strong foundation making it as the world's reserve currency and with this, it cannot be ruined easily even a pandemic like this.

At least, the USD is still going strong even when the pandemic took the world by storm some months ago. The mainstream economy is largely affected though, and if COVID-19 persists, there could be irreparable damages to the USD as the reserve currency of the world. I'm still very optimistic hoping that the US sees the light at the end of the tunnel. We might have to wait until 2021 for a proper cure or vaccine against COVID-19. After that, it's possible that the economy will gradually recover as people head back to their jobs. As far as President Trump goes, I'd say he doesn't influence the worldwide reputation of the country. As you said earlier, he's just an elected official and that's it. People are the ones who determine the future direction of the USA altogether.

As long as the pandemic is still out there taking thousands of lives, it'll be hard for the economy to get back on track. We need to be patient in order to achieve good results in the future. Some say that the world's next reserve currency might be the Chinese Yuan. With China already exploring the possibility of a CBDC, anything could happen in the next 1-5 years. Just my opinion

Of course USA will remain as the world's reserve currency, that's what people think, but isn't it right to also consider other possibilities since the current state of USA now where they have the most number of covid-19 cases has also damage their economy significantly.

If their economy will fall, I think China would replace them in the top since China's economy is undeniably improving and they have handled the virus spread effectively with their successful protocol, once they lead the number of cases but they have contained it already now, while USA's cases on corona virus is still increasing and we don't know yet how big the damage it will contribute as it continues to rise.

We are just too confident with the US but if we look at the other picture, we might see their weakness, a strong country allowed the virus to spread this high, I don't think that's a good definition of a strong country.

There has been this sudden increase in USA hate since Trump became president, which I totally understand because I hate him as well, however people need to realize there is a big difference between USA and Trump. Just because he is the president doesn't mean he is all of USA, he is just an elected official and that's it.

USA is still quite strong in economy and the USD currency is still doing very well, hell they printed out 4 trillion dollars and didn't moved a bit, everyone assumed there would be high interest and all that but nothing happened because they have a strong economy. So, all in all I would say USA is still doing very well and world's reserve currency is still USA. I would say only thing that could change that is another nation going up, not USA going down.

If the yuan becomes the world currency, then we can safely talk about the complete power of China in the world.
I agree with the author that confidence in the dollar, as the world currency can be shaken.
The authorities should take measures to support not only the population, but also the economy.
I want to believe that they can overcome these difficulties.

The dollar became the world currency thanks to the economic muscle of the States

And it was a long process that had started off in the second half of the 19th century and took over 100 years, with the two world wars in between, from which Uncle Sam profited handsomely in every way imaginable. What it means is that a new competitor to the dollar cannot appear out of nowhere. With that said, though, we shouldn't completely rule out an alternative scenario either, which is about America losing its grip on the world on its own. But it's probably as unlikely, and will take decades to develop and unfold anyway (it took a few centuries for the Roman Empire to collapse)