Bank of America foresees end of USD dominance
Citing Vladimir Osakovskiy, Chief Economist for Russia at Bank of America Merrill Lynch, the era of the US dollar’s superiority in the global economy will come to an end sooner or later.
The expert looks back on the early XX century when the pound sterling used to be the leading global currency, but it was eventually squeezed out of the market. Likewise, the US dollar will be also ousted.
The era of the US dollar will approach the dusk when the share of the US in the global economy shrinks in a natural way, the analysts speculates. He thinks that such developments should not be viewed as a disaster. By no means. Nevertheless, this will happen for sure. Osakovskiy says that one of the reasons is a major debt crisis in the US.
On July 4, the Russian Direct Investment Fund (RDIF) and China’s Development Bank (CDB) agreed to found the Russia-China Investment Cooperation Fund of RMB 68 billion ($10 billion) to provide direct investments in the national currencies.
In December 2016, Ankara invited Moscow to abandon the US dollar and make mutual settlements in the Russian ruble and the Turkish lira.
