US Dollar’s Fortress Under Threat: BlackRock’s Bonds Chief Highlights Rising Chinese Yuan and Alternate Currencies
A top strategist at BlackRock, the world’s largest asset manager, suggests that the invincibility of the US dollar as the world reserve currency is fading. Rick Rieder, who oversees over $2.4 trillion in BlackRock’s Global Fixed Income arm, highlights the increasing use of other currencies, such as the yuan and the euro, as well as the growing interest in cryptocurrencies, as factors eroding the dollar’s supremacy.
Rieder also points out that recent events, such as the US debt ceiling crisis and the impact of US sanctions on Russia, have made international investors and central banks less inclined to rely solely on the US dollar as a safe haven. He further predicts that interest rates will decrease next year, though not to the record lows of the past decade. Rieder notes that the near-zero interest rates of recent years have artificially inflated asset prices, which may now need to readjust.
Clever Robot News Desk 30th May 2023
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