In an interview published on Wednesday with Sputnik, famed investor Jim Rogers , co-founder of the Quantum Fund and Soros Fund Management and former business partner of George Soros, shared his expectations for the U.S. dollar’s loss of its status as the world’s reserve currency.
Rogers expressed that many allies of America are actively seeking alternatives to compete with and ultimately replace the U.S. dollar. He confidently stated that this shift has occurred throughout history and will continue to do so. According to the renowned investor, America’s time is coming to an end. The American dollar’s time is coming to an end.
He explained that the dominance of the U.S. dollar will inevitably decline since “No currency has been on top for more than 150 years.”Reiterating that “Nobody has always been on top, so it has always happened,” he pointed out that “People have moved away from whatever currency it is.”
Reasons Why Countries Are Moving Away From USD
Rogers proceeded to detail the reasons why countries are increasingly moving away from the US dollar. The first reason is that the U.S. is the largest debtor nation in the history of the world. “Many people are starting to say: ‘Wait a minute, I don’t know if we want to use that money, because it will have a problem someday,’” he said.
His remarks coincided with the U.S. grappling with a debt crisis that could lead to a default on its debt obligations as early as June 1. Some have warned that a U.S. default could spark a global financial crisis.
Another major reason Rogers mentioned concerns sanctions. The U.S. and its allies have imposed severe sanctions on Russia in response to its invasion of Ukraine, with the most recent round of sanctions announced on Friday. Reiterating his previous warning regarding the weaponization of the U.S. dollar, Rogers described:
The world’s international currency is supposed to be completely neutral. Anybody can use it for anything you want. But now Washington is changing the rules. And if they get angry at you, they cut you off.
He stated that the imposition of U.S. sanctions on Russia has expedited the process of de-dollarization, expressing concerns that even America’s friends worry about potential repercussions affecting them. And so the world is moving more rapidly.”
USD Alternatives
While emphasizing that “The world is trying to accelerate its move away from the U.S. dollar” and many countries are trying to find a USD alternative, Investor Jim Rogers said: “So far, the world hasn’t found something to replace or even compete with the dollar.” In commenting on the possibility of the Chinese yuan becoming the world’s dominant currency, he said, “Sure, you would think the Chinese currency, but the Chinese don’t allow you to buy and sell the currency. It’s not fully converted.”
One of the initiatives aimed at challenging the U.S. dollar’s dominance is the proposed BRICS currency. The BRICS nations (Brazil, Russia, India, China, and South Africa) are collaborating to establish a common currency that would reduce their dependence on the U.S. dollar.The leaders of the BRICS countries plan to discuss this proposal during their upcoming summit in August. Many view the potential success of a BRICS currency as a factor that could undermine the dominance of the U.S. dollar.