World Bank sees end to dollar’s hegemony

[ASusilovic]

The World Bank expects the US dollar to lose its solitary dominance in the global economy by 2025, as the euro and the renminbi establish themselves on an equal footing in a new “multi-currency” monetary system.

The shift will be driven by the increasing power and strength of emerging market economies, with six countries – Brazil, China, India, Indonesia, Russia and South Korea – accounting for more than half of global growth in 14 years.

http://www.ft.com/intl/cms/s/0/00da6b1a-80a6-11e0-85a4-00144feabdc0.html#axzz1MSN6x2WD

Get rid of your USD holdings as long as it is worth some hard currency...

 

[jlancaster]

Quote from ASusilovic:


The shift will be driven by the increasing power and strength of emerging market economies, with six countries – Brazil, China, India, Indonesia, Russia and South Korea – accounting for more than half of global growth in 14 years.

Given the fact that China and India alone have 1/3 of the world's population and that Brazil and Russia are among the 5 largest countries in the world this shift has major potential.

 

[stopnlimits]

Quote from ASusilovic:

The World Bank expects the US dollar to lose its solitary dominance in the global economy by 2025, as the euro and the renminbi establish themselves on an equal footing in a new “multi-currency” monetary system.

2025?

That sounds about right. I wouldn't be surprised if it happens by 2020.

 

[stock777]

So they wont use the $ to hedge money? Is that what you're saying? I think you misspelled it.