There have been a lot of questions about the US dollar’s (USD) domination over the last decade. Despite the greenback making up for a majority of global trade, there is a growing sentiment among many nations to move away from the USD. The de-dollarization trend has taken a substantially strong in recent years.
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Warren Buffett Speaks On The Future Of The USD
Warren Buffett is among the elite class of traders. In a 2015 interview with Business Insider, the veteran trader said the US dollar will reign supreme for at least another 50 years. Going by Buffett’s estimates, the USD could remain the dominant global currency till at least 2065. His arguments could help fight the de-dollarization momentum.
Buffett stated, “I think the dollar will be the world’s reserve currency 50 years from now. I think the probabilities of that are very high.”
When asked how confident he was about his forecast, Buffett said he would bet a lot of money on it. He stated, “Nothing certain. But I would bet a lot of money on that one.”
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The Oracle of Omaha further said he does not expect other currencies to come close to the US dollar. His opinion further extinguishes de-dollarization sentiments. He stated, “I think China and the United States will be the two super-economic powers. But I think it’s extremely unlikely that any currency supplants the U.S. dollar as the world reserve currency for many decades, if ever.”
De-Dollarization To Fade Out?
President Trump has warned nations bit to move away from the US dollar. He said he would impose 100% to 150% tariffs on any country propelling the de-dollarization movement. Despite his warnings, several countries have pushed for local currencies for trade settlements.
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China is spearheading the de-dollarization movement. Trump’s tariffs have further pushed other countries to band together for better trade agreements.
While there is no question about the US dollar’s dominance in global trade, the sentiment is slowly fading.