- Jim Rogers, a popular American investor and the co-founder of the Quantum Fund, has said that The dominance of the US dollar as the global reserve currency is nearing its end.
- Nations are progressively shifting from the U.S. dollar, citing the primary reason as the U.S. being the biggest debtor nation ever.
In an interview with Sputnik, Jim Rogers, a popular American investor and the co-founder of the Quantum Fund, said that The dominance of the US dollar as the global reserve currency is nearing its end.
Jim said that as more countries seek alternatives to the US dollar, ‘there is a growing trend toward finding alternatives to compete with and ultimately supplant the dominance of the US currency.’
He explained that “No currency has dominated the market for a period exceeding 150 years” and considered it a factor that will eventually cause the US dollar’s dominance to decline: He further remarked that “Nobody has stayed on top forever, so it’s always happened,” reiterating that “People have always found ways of moving away from whatever currency it is.”
The Reason For The Shift Of Nations From Using The USD
Rogers explained why nations are progressively shifting from the U.S. dollar, citing the primary reason as the U.S. being the biggest debtor nation ever.”Many people are starting to say: wait a minute, I don’t know if we want to use that money, because it will have a problem someday,” he stated. His comments came at the same time as the United States Of America is facing a debt crisis that may result in a default on its debt payments as soon as June 1st. There are concerns that such a default by the U.S. could trigger a worldwide financial crisis.
Another significant factor highlighted by Rogers was sanctions. The U.S. and its allies have enforced strict sanctions on Russia in retaliation for its incursion into Ukraine, with the latest round of sanctions declared on Friday. Echoing his earlier cautionary statement about the weaponization of the US dollar, Rogers said, “The world’s international currency is supposed to be completely neutral. Anybody can use it for anything they want. But now Washington is changing the rules. And if they get angry at you, they cut you off.”
Rogers said that the imposition of US sanctions on Russia expedites the search for alternatives to rival the US dollar.
…even America’s friends are worried that something could happen to them. And so the world is moving more rapidly.
Rogers acknowledged that numerous countries actively seek alternatives to replace or challenge its dominance. However, he noted that thus far, no viable contender has emerged. When asked about the Chinese Yuan, he said,
The Chinese currency, sure, you would think, but the Chinese don’t let you buy and sell the currency, It’s not completely converted.
BRICS Nations Propose Shared Currency
The introduction of a prospective currency by the BRICS nations is one of the initiatives currently underway to challenge the US dollar’s global economic dominance. The BRICS nations include Brazil, Russia, India, China, and South Africa. These countries are working together to establish a shared currency, intending to decrease their reliance on the US dollar.
The proposal will be discussed at the BRICS presidents’ summit in August, which is slated to take place. The US dollar’s dominance may be threatened by the eventual success of a BRICS currency, which is widely believed to be a potential factor.
More and more countries are adopting the BRICS de-dollarization strategy, including Venezuela and Indonesia. To lessen their reliance on the US dollar and other Western financial systems, ten Southeast Asian countries recently agreed to encourage the use of their individual currencies.