According to German media, large-scale sanctions slapped by the United States against a number of countries have undermined the dollar's preeminent status in the global economy. Against this background, the US economy is witnessing increased volatility, and the Indian rupee is well on its way to becoming one of the key rivals to the greenback.
Tough sanctions against Russia and Iran are forcing some states to take into account the risks associated with the US currency. Many countries are beginning to seek alternatives to the greenback amid serious concerns over possible curbs on withdrawals from US dollar accounts.
Heribert Dieter, a senior economist, believes that the Indian rupee has every chance of replacing the US dollar in international settlements. If India’s economic growth remains strong, with the government maintaining its non-aligned policy, the rupee could become the dominant regional currency.
Earlier, some experts said that the Hong Kong dollar could serve as an alternative to the US dollar and euro for Russia. After all, Hong Kong's central bank has been keeping the HKD exchange rate stable for over 40 years.
