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Dollar predicted to lose global reserve status

Dollar predicted to lose global reserve status
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The world of fx trading could be set for a major shake-up, with experts predicting the US dollar will lose its status as the world's sole reserve currency within the next 25 years.

More than half of the central bank reserve managers taking part in a survey by UBS said they expect the greenback to be replaced with a portfolio of currencies before 2036.

The Swiss investment bank polled approximately 80 reserve managers who collectively control more than $8,000 billion in assets.

With the dollar already trading at close to record lows against other major currencies, the survey has been interpreted as the latest sign that global faith in the greenback is waning.

"Right now there is great concern out there around the financial trajectory that the US is on," chief economist at UBS Larry Hatheway told the Financial Times.

The dollar has slid five per cent so far this year, while large countries such as China have started to diversify their reserves away from the currency.

Posted by Greg SeckerADNFCR-1681-ID-800602143-ADNFCR