Ravi Agrawal’s Post

Its been the 8 decades since the Breton Woods, but it's basically the post-World War-II consensus of 44 countries including China that had given prominence to the today's Dollar position. Since then, there had been many events triggering demise of dollar which includes: i) Richard Nixon's de-linking of dollar in 1971 ii) Introduction of euro in 1990 iii) Global Financial Crisis of 2007-09 iv) Rise of China as a global power Dollar, despite all these headwinds, continued to remain at helm of global currency. Nowadays, recent events like global pandemic and Russia evasion of Ukraine had fueled the debate on "de-dollarization". But the Jared Cohen advocating dollar has shared his profound thought like this; which i found very telling. i) If dollar's position were to change, it would come from evolution not revolution. ii) The nearly eight decades of dollar dominance have witnessed some of the greatest peace and prosperity in history, including the rise of countries such as China.

Barry Eichengreen makes a good point about the importance of the U.S. dollar globally. He highlights the importance of a good connection with China, Russia, and BRICS countries besides the US debt management policy. These policies are necessary to keep the dollar strong. The main reason the U.S. dollar is so influential is because of its leadership in various cutting technologies. As long as the U.S. continues to invest in and excel in these technologies, the world will keep wanting the dollar. But if the U.S. falls behind in technology, especially while using the dollar as a weapon in foreign policy, it could hurt the U.S. economy and more countries, even European countries, will be happy to choose an alternative currency. To maintain the dollar's strength, the U.S. needs to both reduce global enemies and its budget deficit, while also heavily investing in advanced technologies. This balance is crucial for the dollar's long-term life as a world reserve currency. We currently don't have a quick and global substitute for the US dollar but this does not mean that we are not moving towards a multi-currency system. https://lnkd.in/eAGwDmhG

Will the U.S. dollar collapse? Not anytime soon! We're sharing three reasons why in our latest blog.

Will the U.S. dollar collapse? Not anytime soon! We're sharing three reasons why in our latest blog.

Will the U.S. dollar collapse? Not anytime soon! We're sharing three reasons why in our latest blog.

The status of the US Dollar as the world's reserve currency has offered the United States numerous economic advantages. These benefits include lower borrowing costs for the government and American businesses, and a significant demand for dollars worldwide, which keeps its value strong. However, will the dollar continue to hold this position of preeminence indefinitely? ➡ Read more: https://lnkd.in/dbRKhQJU #economy #business

Will the U.S. dollar collapse? Not anytime soon! We're sharing three reasons why in our latest blog.

Will the U.S. dollar collapse? Not anytime soon! We're sharing three reasons why in our latest blog.

Will the U.S. dollar collapse? Not anytime soon! We're sharing three reasons why in our latest blog.

Will the U.S. dollar collapse? Not anytime soon! We're sharing three reasons why in our latest blog.