BITCOIN

Asset management firm Eurizon SLJ’s strategists have warned that the erosion of the U.S. dollar’s global reserve currency status has accelerated at an alarming pace in recent years, especially following the onset of the Russia-Ukraine war. They noted that the USD has declined 8% in one year, which is “equivalent to 10 times the average annual pace of erosion in the USD’s market share in the prior years.” Strategists on the U.S. Dollar Losing Its Global Reserve Currency Status Eurizon SLJ Asset Management says the U.S. dollar experienced a significant decline as a preferred reserve currency in 2022 despite its continued dominance in international trade. The firm’s strategists Joana Freire and Stephen Jen wrote in a note Monday: We believe the erosion of the dollar’s reserve currency status has accelerated in recent years at an alarming pace, especially since the start of the Ukraine war. “The dollar suffered a stunning collapse in 2022 in its market share as a reserve currency,

Fitch Solutions’ global head of country risk has named the rising adoption of cryptocurrencies, the de-dollarization efforts by the BRICS countries, and China’s rising “economic might” as key factors that erode the U.S. dollar’s dominance over time. He cautioned that China will “exert more influence in global financial institutions and trade.” Analyst Explains Why U.S. Dollar’s Dominance Is at Risk Fitch Solutions’ global head of country risk, Cedric Chehab, explained why the U.S. dollar’s dominance is declining in an interview with CNBC on Sunday. Fitch Solutions provides financial information services; it is a division of Fitch Group that includes Fitch Ratings, a global leader in credit ratings and research. The analyst explained that “Any reduction in the status of the U.S. dollar is going to be a slow erosion rather than a paradigm shift,” adding: We’re gonna see that dollar dominance erode over time. Chehab named three key reasons why the USD dominance is eroding. The fir