April 26 17:11
With concern growing among many analysts about the dollar losing its status as the world's reserve currency,
Goldman Sachs (GS) stated that it does not believe the dollar era is over, believing that the dollar will remain dominant on the world stage for a long time.
Although GS acknowledges there is a clear risk if the US abuses its "exorbitant privileges",
the bank believes dedollarization is "just a lot of talk (again), not a lot of transaction".
"We don't see any evidence of that in the data yet (for example, Brazil's growing Chinese yuan reserve share has replaced the Canadian dollar, not the US dollar), and
we are confident there is no real competitor currently," Goldman Sachs said. The bank stated that
"some of the decline in the dollar's share can likely be attributed to stable market forces, as
- treasury bonds fell and
Asian central banks sold their dollar holdings to counter the rise in the dollar last year."
Goldman Sachs analysts also noted that
"in addition, the
- sanctions against Russia,
Brazil's plans to implement yuan clearing agreements,
speculation on the use of the yuan in commodity trade, as well as the
banking crisis and the
debt ceiling crisis in the United States
are not enough to replace the role of the dollar in world reserves or in trade.”
Indeed, analysts believe that
"other currencies still have to overcome many hurdles to reach the same status as the dollar," given the
- "depth of the capital market, the
establishment of trust for access and the
accompanying framework for legal and commercial billing and
currency management systems."