• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, July 9, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

U.S Dollar To Keep Its Global Dominance Despite Spirited Challenge by the Chinese Yuan

May 28, 2023
Stephen M.Cby Stephen M.C
in Economy
0
U.S Dollar To Keep Its Global Dominance Despite Spirited Challenge by the Chinese Yuan

Moody’s Investors Service has predicted that the American greenback will likely retain its crown despite all the challenges from the BRICS nations to unseat it from the thrown as the world’s number one currency.

Since the Russia-Ukraine war broke out, there have been a huge concern about the U.S. dollar losing its dominance in international trade and the finance world, as a result of sanctions by the United States on Russia. However, Moody’s has moved to quell the raging debate, though admitting the emergence of a multipolar currency system in the future.

“We expect a more multipolar currency system to emerge over the next few decades, but it will be led by the greenback because its challengers will struggle to replicate its scale, safety and convertibility in full.”

Moody’s

However, that’s not to say the ratings firm doesn’t see any risks in the short term. A U.S. pivot to protectionism, weakening institutions and the risk of a default would threaten the dollar global dominance, Moody’s said.

RelatedPosts

Ghana’s IMF Programme Goes Off Track

Ghana’s Reserves Soar: Mahama Eyes 10-Month Import Cover to Boost Cedi Stability

Bank of Ghana’s Tight Monetary Stance Gets IMF Nod in Battle Against Inflation

“The greatest near-term danger to the dollar’s position stems from the risk of confidence-sapping policy mistakes by the US authorities themselves, like a US default on its debt for example. Weakening institutions and a political pivot to protectionism threaten the dollar’s global role.”

Moody’s

Debt Would Be Rapidly Shored Up

Moody’s report further noted that even if a default on the U.S. government debt would be rapidly shored up, it would permanently hurt U.S. treasury holdings as risk-free assets.

Meanwhile, the debt-ceiling standoff sent jitters to financial markets. However, U.S. officials signaled that they made some progress but no deal has been reached yet as the clock continues ticking down to the point when the Treasury runs out of cash.

The tension around the U.S. debt-limit negotiations ratcheted up after Fitch Ratings warned the nation’s AAA rating was under threat from a political standoff that’s preventing a deal. Moody’s hasn’t made any adjustments to its outlook in the wake of the wrangling in Washington to lift the nation’s borrowing capacity.

“Although we expect that politicians will eventually agree to raise or suspend the debt limit and avoid a default on government debt, greater polarization in the domestic political environment over the last decade has weakened both the predictability and effectiveness of US policymaking. Sanctions further inhibiting the free flow of the dollar in global trade and finance could encourage greater diversification.”

Moody’s

The U.S. dollar liquidity, safety and lower transaction costs will ensure its domination to continue in the international trade and finance, Moody’s concludes, citing also the lack of viable alternatives. The central banks have reduced the share of the dollar holdings to 58% from 71% in 2000, while boosting allocations to the renminbi, the Australian and the Canadian dollars, the report said.

A gauge of the dollar strength gained for a fourth day, the longest rising streak since October. The greenback is on track to gain 1.7% in value in May after two months of declines.

READ ALSO: Rebels Seize Northern Nigeria, As Families Demand Justice

Tags: BRICSDollarMoody’sYuan
Please login to join discussion
Previous Post

Rebels Seize Northern Nigeria, As Families Demand Justice

Next Post

Turkey Holds Runoff Election Between Erdogan And Kilicdaroglu

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Bright Simons, E&P, Azumah
General News

Bright Simons Slams E&P Over Gold Mine Controversy

July 8, 2025
Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade
Banking

Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade

July 8, 2025
Kwasi Sibo
Sports

Kwasi Sibo Eyes Black Stars Call-Up

July 8, 2025
Rishi Sunak Joins Goldman Sachs As Adviser
UK

Rishi Sunak Joins Goldman Sachs As Adviser

July 8, 2025
Dr. Cassiel Ato Forson, Gold, Ghana
General News

Ato Forson Declares War on Gold Smuggling at GoldBod Task Force Inauguration

July 8, 2025
Us Supreme Court Approves Handover Of Trump’s Tax Records
USA

House Democrats Demand Release Of Epstein Files Involving Trump

July 8, 2025
Bright Simons, E&P, Azumah
General News

Bright Simons Slams E&P Over Gold Mine Controversy

by Silas Kafui AssemJuly 8, 2025
Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade
Banking

Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade

by Stephen M.CJuly 8, 2025
Kwasi Sibo
Sports

Kwasi Sibo Eyes Black Stars Call-Up

by Evans Junior OwuJuly 8, 2025
Rishi Sunak Joins Goldman Sachs As Adviser
UK

Rishi Sunak Joins Goldman Sachs As Adviser

by Lawrence AnkutseJuly 8, 2025
Dr. Cassiel Ato Forson, Gold, Ghana
General News

Ato Forson Declares War on Gold Smuggling at GoldBod Task Force Inauguration

by Silas Kafui AssemJuly 8, 2025
Us Supreme Court Approves Handover Of Trump’s Tax Records
USA

House Democrats Demand Release Of Epstein Files Involving Trump

by Comfort AmpomaaJuly 8, 2025
Bright Simons, E&P, Azumah
Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade
Kwasi Sibo
Rishi Sunak Joins Goldman Sachs As Adviser
Dr. Cassiel Ato Forson, Gold, Ghana
Us Supreme Court Approves Handover Of Trump’s Tax Records
[/vc_row_inner]

Recent News

  • Bright Simons Slams E&P Over Gold Mine Controversy
  • Bank Al-Maghrib Joins Afreximbank’s PAPSS to Drive Intra-African Trade
  • Kwasi Sibo Eyes Black Stars Call-Up
  • Rishi Sunak Joins Goldman Sachs As Adviser
  • Ato Forson Declares War on Gold Smuggling at GoldBod Task Force Inauguration
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.