The de-dollarisation debate

There are reasons to be bearish on the greenback, but it is unlikely to lose the reserve currency status

Of late, one of the hot topics under discussion among commentators is the issue of the US dollar (USD) being the reserve currency of the world and the huge advantage and privilege that this reserve status bestows on the US. While the US accounts for about 25 per cent of global gross domestic product (GDP), its true economic power is far greater, driven by global dependence on the USD.

This topic has come up for debate recently as there is anecdotal evidence of countries trying to break away from the USD. There are reports of China and Saudi Arabia agreeing to