De-dollarization is the most talked about subject in developing countries where they aim to uproot the US dollar from the world’s reserve currency status. Emerging economies want their local currencies to take first precedence by ending dependency on the US dollar. The prospects of the greenback are at stake as countries in the East are looking to tilt global financial power on their side. The upcoming decade could decide if the USD will remain the de facto reserve currency of the world.

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De-dollarization: Analyst Forecasts the US Dollar’s Future

Leading economist and author Madan Sabnavis predicted that de-dollarization’s time has not come yet and the US dollar will remain the global supreme currency. He wrote that anchor currencies, BRICS currencies, and local currencies are not qualified to withstand the whiplashes of the markets. In addition, “finding common ground would be difficult” among developing countries, he stressed.

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The US dollar has been dominant for decades and can bounce back stronger after every dip. That is not the case for local currencies as they take longer to climb up the ladder after a fall. “De-dollarization can work only if countries form trade groups and use their own currencies for settlements. The acceptance of these outside these zones will remain uncertain. The US dollar will continue to be the world’s anchor currency,” and make de-dollarization a failure, he said to Mint.

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Sabnavis explained that “there is no alternative” to the US dollar and “there is no getting away from the existing matrix.” He added, “And for the next few years, there is no alternative.” In conclusion, the analyst has predicted that the US dollar’s future looks bright and de-dollarization cannot derail its growth.

Therefore, the US dollar will still rule the roost and de-dollarization will not succeed in the coming years. Read here to know how long the US dollar could reign supreme in the global financial markets.