Skip to main content

Another Call For The Demise Of The Greenback

The rhetoric around the US Dollar losing its status as the world's premiere reserve currency is getting heated once again. Dr. Doom started to go down that path today and China and Russia added their two cents as well. But it should say something when Roubini will only tread lightly in these waters.

"We may see complementary reserve currencies," Roubini said at a conference today in Athens. While it's "not going to happen overnight," the development "will diminish the role of the dollar over time."

And China and Russia are banking on a currency that doesn't even exist.

Russian President Dmitry Medvedev last week renewed his call for consideration of a supranational currency to challenge the dollar. Chinese Central Bank Governor Zhou Xiaochuan said in March that the International Monetary Fund should create a "super-sovereign reserve currency."

When it was originally created, people said the Euro was going to replace the USD as the world's primary reserve currency. A couple of months ago there were pundits arguing the Euro's days were numbered. If the best alternative the naysayers can come up with is currently in the realm of fantasy, the USD is still on top.
Dollar's Reserve Status May Deteriorate, Roubini Says [Bloomberg]