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A new report has warned about the decreasing hold of the US dollar. According to economist Kenneth Rogoff, the world is now moving towards the euro, yuan and cryptocurrency. This will not only reduce the strength of the dollar, but will also affect America’s global dominance policy. This may be a matter of concern for Trump.
There are signs of a big change in the world economy. A new report claims that the dominance of the US dollar is no longer the same as before. Gradually many countries are distancing themselves from the dollar and the inclination towards the euro, yuan and cryptocurrency has increased. After this warning by renowned American economist Kenneth Rogoff, the concern of Donald Trump, who has been considering the power of the dollar as America’s biggest weapon, may increase. Kenneth Rogoff has clearly said that now the world is gradually distancing itself from the dollar and trust in other currencies is increasing.
People are now showing interest in euro, yuan and crypto
According to the report of Economics Times, Rogoff says that now people do not want to depend only on the dollar. Now people’s interest is increasing in digital money like euro, China’s currency yuan (Renminbi) and even cryptocurrency. He said, the dollar will remain for now, but now competition is standing in front of it. According to him, these changes can gradually weaken the power of America as well. Now if America wants to impose economic sanctions on any country, it will not be as effective as it was earlier
America will be shocked
Rogoff has warned that if more countries distance themselves from the dollar, it will have a direct impact on the US economy. Interest rates may increase, which will make it difficult to take and repay loans there. He said that many countries are now thinking of reducing America’s dollar reserves. They may reduce investment in US treasury bills. This will make it costly for America to raise money from outside.
America is already in heavy debt
Rogoff said that America already has a lot of debt. On top of that, if interest rates also increase, then the problems will increase further. He also criticized Donald Trump’s plan which talks about imposing 50% tax (tariff) on goods coming from India. Rogoff said that this step can be harmful for America. However, he also said that there is no major crisis right now, but the dangers are definitely increasing. When the debt is very high, there is instability in politics and suddenly there is a big shock, then the real crisis comes, Rogoff said.
India can benefit
This news is definitely bad for America but it is also good for countries like India. If the dollar weakens and currencies like Yuan or Euro strengthen, then the economic picture of the world can change. There can also be opportunities in this for developing countries like India. The rupee is at a bad level against the dollar. Currently, the value of rupee against one dollar is Rs 87.31. In such a situation, if Rogoff’s statement proves to be correct in the coming time, then the value of rupee against the dollar can improve.
