us dollar news: Dollar at risk, it’s role as reserve currency under immense strain, says Nassim Taleb author of The Black Swan
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The United States economy is already under fears of inflation and recession, and amid the incoming US elections this November, the strength of the US dollar is also becoming a major factor for concern in the US markets. Nassim Nicholas Taleb, who wrote the book The Black Swan about the unpredictable events around finance and markets, has now voiced his opinion about the condition of the US dollar in the coming days, and the factors that may lead to its immense strain.
Western sanctions on Russia a mistake?
Taleb termed the freezing of Russia’s assets after Putin announced the Ukrainian invasion, as one of the biggest financial mistakes of the 21st century, that could have been altogether avoided, as the move looked more like a ‘confiscation’. Meanwhile, the author is also of the opinion that the status of the US dollar as the top reserve currency of the world is slowly eroding, and even though it is used for 88% of foreign transactions, it may not stay as popular in the coming years.
The sanctions against Russia may have been the catalyst towards the dollar’s decline in terms of repute as the top reserve currency, suggest report.
Role of the dollar diminishing?
Taleb is of the opinion that the role of the dollar is going towards a progressive loss, and the de-dollarization trend is also coming at a time when the currency is going deeper into debt, meaning things could get much more complicated around the US economy. With the latest Fed rate cuts, and the fears of a major US recession, things are already too complicated to address, and now the drop in the stature of the dollar could indeed drive the country’s economy into a major danger.
FAQs:
Is the US dollar a strong currency?
Not only is the US dollar a strong currency, it is one of the most used currencies for major financial transactions across the world.
Are US dollars accepted in Russia?
Yes, US dollars are widely accepted in Russia apart from their own national currency and other foreign currencies from China, Japan, and others.
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