Is ‘King Dollar’ in danger of losing its crown? Probably not yet, but the rapid unwind of last year’s torrid rally in the U.S. dollar, combined with efforts by Beijing and others to ease their dependence on the buck, have helped to reinvigorate speculation that the greenback’s dominance over international trade and finance may be moving toward its twilight.
Talk about “de-dollarization“ has intensified and Wall Street analysts have joined in, publishing research reports forecasting more competition for the buck in trade and global reserves alongside assessments about where the dollar is heading in the coming months, and how the adoption of so-called central bank digital currencies might shake things up. To be sure, many currency strategists and economists have pushed back against the notion that the dollar is anywhere close to shedding its reserve status, citing its dominance in global trade and as a widely used reserve asset by central banks. The dollar’s sharp appreciation last year caught many currency strategists off guard, as has its reversal over the last six months. After hitting its strongest level in more than two decades in late Se …
Article Attribution | Read More at Article Source