According to Stephen Jen, CEO of Eurizon SLJ asset management company and economist, there are several currencies ready to challenge the dominance of the American dollar. The former economist has previously stated that the status of the American dollar as the world’s reserve currency is likely to fade quickly due to the ongoing trend of de-dollarization.
Jen sees the potential for a shift in currency dominance from unipolar to multipolar, specifically tripolar, as he believes the other currencies have weaknesses as an international currency and potential challengers to the US dollar’s dominance.
However, Jen notes that non-dollar currencies will not reach a point where they dominate a larger market share than the American dollar.
He predicts that both the Euro and Chinese Yuan will have roughly equal presence in the market, creating a tripolar configuration that aligns with the economic weight of the three blocks.
Jen emphasizes that for the Chinese Yuan to gain strength as a reserve currency, it must improve its quality from the Chinese financial sector. He also notes that foreign investors are still cautious about investing in Chinese equities and bonds.
On the other hand, economist Nouriel Roubini predicts that the world will shift to a bipolar reserve currency system, with the Chinese Yuan serving as an alternative to the American dollar. The BRICS’ steps appear to help the Yuan become an alternative currency, along with the soon-to-come BRICS currencies.
More News About Crypto : NEWS
Follow our Twitter : https://twitter.com/DinoDapps
