Jim Rickards, economist and author of “Currency Wars,” says the US Treasury is actually the biggest threat to the status of the US dollar as a reserve currency. However, he warned that a growing number of countries seeking alternatives to the dollar as a currency of payment is also “a big problem”, stressing: “The dollar is under attack from all sides”.
Jim Rickards on the US dollar’s loss of reserve currency status
Economist and “Currency Wars” author Jim Rickards has warned that while China and other nations are stepping up efforts to reduce their dependence on the US dollar, the biggest threat to the USD comes from the Treasury. He pointed out on Saturday during “Fox & Friends Weekend”:
The biggest enemy of the dollar as a reserve currency is not all these other countries. It’s the US Treasury.
Rickards explained the difference between payment and reserve currency. He noted that while many countries are moving away from using the US dollar for payments, the “biggest threat” to the US dollar is its potential replacement as a reserve currency. He detailed:
The US Treasury weaponized the dollar, froze the reserves of the Central Bank of Russia and other countries looking around and saying, “Hey, what if they don’t like what I did? And if they don’t like one of my policies, will they freeze my reserves? »
“If you say I want to get out of the dollar as a reserve currency, the only real alternative is gold,” the economist said.
Commenting on efforts by China and several other countries to challenge the USD as a payment currency, Rickards said:
It’s a big problem. The dollar is under attack from all sides. People are looking for alternative payment currencies.
A growing group of nations, which includes China, Russia, India, Malaysia and Saudi Arabia, have made efforts to reduce their dependence on the US dollar. Recently, China and Brazil reached an agreement to replace the USD with their own currency in commercial transactions. Additionally, ASEAN countries have agreed to reduce their reliance on the US dollar for trade settlements, and BRICS countries are reportedly working on creating a new currency.
Do you agree with Jim Rickards? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.