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Last Updated : Sep 16, 2020 11:22 AM IST | Source: Moneycontrol.com

Dollar may lose its position as global reserve currency, warns hedge fund manager Ray Dalio

Dalio is among a list of pundits who have recently warned of an impending dollar crash. Credit Suisse' Ray Farris and former Morgan Stanley Asia chairman Stephen Roach were some other big names who have warned of a massive slump in the geenback.

The stimulus measures taken by the US Federal Reserve to combat the economic downturn led by COVID-19 will hurt dollar's decades-long position as the global reserve currency, warned Ray Dalio, founder of Bridgewater Associates.

The billionaire hedge fund manager said that even though trillions of dollars in stimulus measures have helped equities around the world register a strong recovery, it has led to debasing of the greenback.

"There is so much debt production and debt monetisation," Dalio said according to a Bloomberg report.

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Dalio is among a list of pundits who have recently warned of an impending dollar crash. Credit Suisse' Ray Farris and former Morgan Stanley Asia chairman Stephen Roach were some other big names who have warned of a massive slump in the greenback.

According to Bloomberg Dollar Spot Index, the greenback has fallen 10 percent from its peak in late March and it is now trading cheaper in comparison to other developed market currencies along with precious metals such as gold and silver.

Dalio's Bridgewater Associates, which has an asset under management of about $148 billion, has favoured gold and inflation-linked bonds over government bonds and cash citing that the later offer a negative rate of return as more stimulus measure could be in the pipeline.

According to Forbes, Dalio had an estimated net worth of $18.6 billion, as on July 2020, making him the 69th richest person in the world and 26th on the Forbes 400 list.
First Published on Sep 16, 2020 11:15 am
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