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Will the U.S. dollar be replaced as the world's reserve currency any time soon?


US Dollars can be replaced?

Will the U.S. dollar be replaced as the world's reserve currency any time soon?

The US dollars will remain as the reserve currency as long as most countries around the world still use the US dollars for trade between them.. Example Singapore buy rice from Thailand…Singapore need to keep US dollars in as reserves currency and using the Swift payment system to make payment to Thailand.

From last month, all countries in ASEAN made a switch to use ASEAN currencies…to replace the US dollars for payment in all trade transactions between countries in ASEAN. In future, Singapore need not keep US dollars in reserves… when Singapore buy rice from Thailand…or trade with other countries in ASEAN.

When Singapore buy oil or gas from Russian, Singapore pay Russia with RMB (China) …instead of US dollars. For buying goods from China, Singapore can pay China directly in RMB. In this way, Singapore need only to keep minimum amount of US dollars as reserves …only for trade with the USA.

To date, 108 countries has decided to use their own currencies ..or RMB or Rupee …when they trade with countries in the global south. As soon as BRICS make a decision in August 2023…they can trade with BRICS countries …using any one of the basket of currencies acceptable to BRICS. The adoption of BRICS currencies to replace the US dollars for trade between the global south nations ..will take place as a matter of fact. It will happen just like how ASEAN countries have adopted the use of ASEAN currencies for trade between themselves. IT will come …as sure as the sun will rise tomorrow.

When most countries around the world switch to using other currencies for trade (to replace the US dollars), they will keep only the minimum amount of US dollars in their reserves ..for trade with the USA.

This switch will NOT happen overnight It will happen gradually. There will be a rush after August this year, then it will gradually slow down…it will happen as all nations settle their trade payments over the next two years.

Yes. The US dollars is expected to be replaced for international trade … in two to three years time. All nations will reduce the amount of US dollars they keep in their reserves (for trade) DRASTICALLY after the switch is made.

Those who claim the US Dollar is going to collapse any day are economic morons. You can easily monitor devaluation of the US Dollar against gold. The price of gold in USD on 6/23/23 is $1,920.

Going back 1 year, the price was $ 1,833. Gold went up $ 87. During that time, inflation was 9%. At that rate gold should be $ 1,998. Gold has not even kept up with inflation. BRICS and Bitcoin have had ZERO impact on the USD. No intelligent investor discusses this. Just doomsayers.

Eventually, that will change. Not tomorrow.

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