A bipolar currency regime will replace the dollar's exorbitant privilege
clips from Nouriel Roubini editorial in Financial Times:
"The greenback is bound sooner or later to feel the effects of intensifying geopolitical rivalry between the US and China.
... In December, China and Saudi Arabia conducted their first transaction in renminbi. And it is not farfetched to think that Beijing could offer the Saudis and other Gulf Co-operation Council petrostates the ability to trade oil in RMB and to hold a greater share of their reserves in the Chinese currency.
... It is likely that the GCC (Gulf Cooperation Council) countries, as well as many other emerging market economies, may soon start accepting such Chinese offers given that they do a great deal more trade with China than the US.
... the relative decline of the US dollar as the main reserve currency is likely to occur over the next decade. The intensifying geopolitical contest between Washington and Beijing will inevitably be felt in a bipolar global reserve currency regime as well."
Read more:
https://www.ft.com/content/e03d277a-e697-4220-a0ca-1f8a3dbecb75
relayerbob
(6,504 posts)It's stretched to its limits right now.
Tetrachloride
(7,701 posts)make those conclusions worth believing.
Its a nice thought exercise for economic, environmental and national security students.
Tetrachloride
(7,701 posts)my neighbor who has lived in Saudi Arabia a number of years.
He remarked on the topic. He believed the Egyptian pound would rebound 10-15 percent soon. Since then, the Egyptian pound has dropped 16 percent.