The currency dynamics have now evolved, threatening the well-established dominion of the US dollar. Major currencies of the world have now started to gnaw at the US dollar, challenging the currency to give up its reserve currency status. The dollar is currently in deep trouble, primarily due to the rising US debt metrics coupled with Trump’s fiery trade stance, which is constantly adding more pressure on the USD. In this wake, a noteworthy economist has warned of the consequences, sharing how this one currency is capable of dethroning the dollar and becoming its successor in the process.

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A New Currency on the Radar: Economist Warns

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Source: thecradle.co

Senior Asian economist Hoe Eo Khor, in his recent analysis, shared how the Chinese yuan is capable of skillfully outperforming the US dollar. The expert shared how the yuan has the power to overtake the US dollar’s global currency reputation if Beijing “liberalizes convertibility” and access for foreigners.

“The US exceptionalism is over—the beginning of the end. The US dollar is not the safe currency it used to be. The renminbi has always been held up as one of the possible alternatives, and it’s growing.” As shared by Khor to The Post

However, in order to do so, China must internationalize the yuan on a broader spectrum, exploring the launch of yuan-denominated stocks, bonds, and other assets. The Singapore-based economist later emphasized the factor of convertibility as one of the core elements promising the yuan’s international success.

“You can probably open it up more,” Khor said. “If you’re going to encourage people to hold your currency, you need to have assets to back it up, and it needs to be convertible.” Khor shared

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US Dollar Crisis Deepens

The dollar is struggling to maintain its face as it battles continued pressure buildup and volatility. The majority of the chaos has been initiated by Trump’s fiery tariff stance, promoting a fierce possible trade war. This development weakened the investors’ stance in the American currency, enabling investors to dump USD for alternative assets.

At the same time, the rise of gold and Bitcoin is also threatening the USD’s global positioning.

“Crypto is loving the Moody’s downgrade: Bitcoin is now 4% away from a new all-time high and up over +40% since its April low. As the US dollar weakens and uncertainty rises, Bitcoin and gold are thriving. Instability is Bitcoin’s best friend.”

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