The US dollar is currently losing its grip as the rapidly changing financial landscape continues to challenge the USD. The American currency is currently experiencing a sharp decline in its popularity, with global superpower nations exploring viable US dollar alternatives to ramp up their investments. The global central banks are looking forward to diversifying their assets after documenting the dollar’s disappointing performance as of late. Several leading entities, including Goldman Sachs and Deutsche Bank, have predicted the US dollar will fall, as the American currency is poised to decline further, battered by the changing geopolitical regimes. Goldman Sachs has once again come up with a new prediction claiming how global nations may opt for these currencies instead of investing in the waning US dollar.

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Goldman Sachs Currency Picks

1. South Korean Won (SKW)

The South Korean won is the leading contender picked by Goldman Sachs. SKW is currently standing tall against the US dollar and is attracting credible volumes amid the recent US dollar decay. The financial giants further shared how WON is attracting more attention due to the country exploring the FTSE World Government Bond Index next year. The aforementioned narrative is also helping WON attract nations that want to diversify away from the flailing US dollar.

“We believe the diversification away from dollars should persist, as this trend has been well entrenched for the past decade,” they wrote. ”

2. Singapore Dollar (SGD)

The Singapore dollar is another key candidate helping nations diversify away from the American currency. The Singapore dollar boasts a stellar reputation, offering Western-style economic governance infrastructure backed by regional stability. The currency has been noted to perform quite well at times of economic distress and has lately been gaining immense traction due to volatile USD antics.

“We anticipate a rotation to other global assets, of which Asian assets could be a subset.” The Goldman Sachs strategists wrote.

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3. Chinese Yuan (CNY)

The Chinese Yuan is another lucrative currency contender that has been grabbing the central spotlight in recent times. The yuan is already working towards its internationalization and has already established a well-connected network promoting cross-border transactions. Per the People’s Bank of China, total cross-border yuan transactions amounted to 21.1%, or $41.6T, between January and August in 2024.

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