We’re Shifting to ‘Bipolar’ Global Reserve Currency System With Chinese Yuan as Alternative to US Dollar – Economics Bitcoin News

Economist Nouriel Roubini, also known as “Dr. Doom,” predicts that the global reserve currency system will shift from unipolar to bipolar. It is expected that most of the countries that are trying to reduce their dependence on the US dollar suggest the Chinese yuan as an alternative to the US dollar.

Rubini on the US dollar and the Chinese yuan as global reserve currencies

Nouriel Roubini, aka Dr. Doom, discussed the future of the US dollar as the world’s reserve currency in an interview with Indian media outlet CNBC TV-18, published on Tuesday. Roubini is Chief Economist at Atlas Capital and is also Professor Emeritus of Economics and International Business at New York University’s Stern School of Business.

He explained that most of the countries that form a competing group to oppose the United States and reduce their dependence on the dollar are striving to create an alternative economic, monetary and global currency reserve system. The economist added:

These allies will move towards proposing the renminbi as an alternative system to the US dollar. We will move from a unipolar global reserve currency system to a bipolar global reserve currency system.

This was not the first time Roubini mentioned a bipolar currency system. In February, he warned that the US government’s escalating restrictions on its adversaries, including financial sanctions, are a catalyst for the rise of a bipolar global currency reserve system in the next decade.

India and de-dollarization

Roubini also spoke about India in particular. While noting that the country’s fiscal policy “could be better,” he stressed, “It’s okay,” recognizing India as a promising emerging market.

The economist believes that India, along with a few other emerging markets, will become a dominant force in the coming years and decades, especially as additional reforms are implemented. As a result, these markets are considered promising investment destinations for both the fixed income and equity markets.

D is not expected. Do not let India participate in the de-dollarization movement despite the potential rise of an alternative currency system. He believes that the strategic rivalry between India and China means that they may remain more in line with the Western currency system rather than the renminbi. He said:

Now India may need oil, energy, food and fertilizer from Russia, but the dependence can change over time.

The BRICS countries are said to be developing a new form of currency that would reduce their dependence on the US dollar. The BRICS group currently consists of Brazil, Russia, India, China and South Africa, but several other countries have expressed interest in joining the bloc, including Argentina, Iran, Indonesia, Turkey, Saudi Arabia and Egypt. Ten Southeast Asian countries that are members of the Association of Southeast Asian Nations (ASEAN) have also agreed to use local currencies to support cross-border trade and investment in the region.

Do you agree with Nouriel Roubini? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.