The “decline” of the dollar’s global dominance. Jim Rogers, an investor, says that US policies and rising worries about the country’s debt are dragging down the dollar.
On Wednesday, Jim Rogers, a well-known investor, told the Sputnik news agency that the US dollar is losing its position as the world’s leading currency because the US government has become the world’s biggest debtor.
The co-founder of the Quantum Fund said that more and more countries are growing wary of the dollar because relying too much on it can cause many problems.
In an interview with a Russian news outlet, Rogers said, “Many US allies are moving, looking for something to compete with and eventually replace the US dollar.”
According to the investor, an international currency should be completely neutral. However, the White House’s lack of neutrality and growing worries about the US’s ability to pay its debts have taken away this quality from the dollar.
“Many people are starting to say, ‘Wait a minute, I don’t know if we want to use that money because it will cause trouble someday,'” he said. “But also, the world’s international currency is meant to have no bias. It can be used for anything by anyone. But now the rules are being changed by Washington. And if you make them mad, they cut you off.”
Rogers said that more and more countries are looking for an alternative to the US dollar. He also said that the Chinese yuan could replace the US dollar as the most common way to settle foreign transactions.
In foreign trade, Russia has been using the yuan to improve its economic ties with China over the past few years. At the beginning of April, the Chinese currency replaced the US dollar as the foreign currency that was moved the most in Russia. The yuan is also making its way into more and more places around the world.
“It will take place. It has always been the case. The time for America is almost up. “This time, the end of the American dollar is near,” Rogers said. “No currency has been number one for more than 150 years. No one has always been on top, so it’s always happened.”