Deputy Head of the National Bank of Ukraine Serhiy Nikolaychuk emphasizes that as of today, the US dollar has no full-fledged alternatives in the international arena. Despite this, over the past decade, its role as a global reserve currency has indeed been weakening.
Points of attention
- Role of euro, yuan, and cryptocurrencies may increase regionally, but major shifts in the global currency landscape are not expected.
- Despite possible alternatives, the dollar is predicted to maintain its primary position in global markets for the foreseeable future.
What will happen to the dollar in the future?
Serhiy Nikolaychuk predicted that over the next 10 years, the dollar will remain the main global reserve currency.
However, this will not prevent competitors from gradually weakening it and strengthening their own positions.
The National Bank also believes that the United States will remain the largest economy in the world, and dollar-denominated markets will be leading.
This creates the prerequisites for searching for some alternatives. None of these alternatives currently has a chance of knocking the dollar off its pedestal, the deputy chairman of the NBU emphasized.
According to Nikolaychuk, against the backdrop of recent events, Ukraine needs to continue to focus on the internal aspect of the stability of the national currency, that is, ensuring price stability, namely maintaining 5% inflation.
In addition, the role of the exchange rate for economic adaptation and as a shock absorber should be strengthened.
The NBU also predicts that at the regional level, the role of the euro and yuan, as well as cryptocurrencies, may increase, but the situation will not change radically.
