As the world gradually splits into blocs led by the US and China, there are expectations that the renminbi will start to challenge the dollar’s position as the world’s reserve currency. These expectations may be proven wrong, economists say.
The countries whose currencies are considered as the most likely contenders to end dollar dominance are the ones which run large current account surpluses; how can they provide liquidity to the rest of the world?
Sanctions against Russia have spurred calls for an alternative holding, but this would only destabilise the financial system
One China bull, Shaun Rein, MD of China Market Research, is not buying all the scary headlines that are emerging out of the country.
Odd as that may seem against a backdrop of Washington toying with a sovereign debt default, some economists feel there may be few other credible options.
China on Saturday condemned the 'short-sighted' political wrangling in the United States over its debt problems and said the world needed a new global stable reserve currency.
Pradeep Khanna, Director & Head of FX Trading, HSBC India says barring worries over Eurozone, the euro is likely to trade higher in the medium-term.
Andrew B Busch, Global Currency and Public Policy Strategist at BMO Capital Markets in an interview with CNBC-TV18’s Menaka Doshi, talks about if a dollar rout is likely to happen.