What Does the Future Hold for the American Dollar?
“The dollar is the weakest currency except for all the others,” George Soros, chairman of Soros Fund Management, told The New York Times last week. However, his confidence in the U.S. dollar is not shared by everyone with eyes on the market — even with the debt ceiling temporarily lifted and the federal government refunded.
“How can the United States preserve its financial and security leadership role when it conducts itself with such ineptitude and such disregard for the consequences for the world?” the Times reports Charles Dallara, a Treasury official for two former administrations, as asking.
According to The New York Times, two-thirds of the world’s foreign currency reserves assets, two-fourths of debt securities, and more than half of cross-border loans and deposits are held in U.S. dollars. With the instability of the American economy at present, some are hopeful of breaking that reliance. “It is perhaps a good time for the befuddled world to start considering building a de-Americanized world,” noted Chinese state news agency Xinhua.