The US dollar may soon lose its status as world's reserve currency, a for

Washington: Although the US dollar is currently at its peak, it will lose its status as a global reserve currency soon, warned Lawrence MacDonald, a former senior official at Lehman Brothers. MacDonald also cautioned that the globally used SWIFT payment system is being used as a weapon to end the dominance of the US dollar. Over the past few months, the US dollar has been increasingly strengthening, affecting economies in the rest of the world. Therefore, many countries have started using other alternative currencies and local currencies. A few months ago, the International Monetary Fund (IMF) also brought this change to everyone’s attention.

The US dollar is going to lose its leading position soon. It may not happen immediately, but it would perhaps take another 20 to 30 years to bring about an end to the dollar, considering the huge wealth and military power of the United States. But there is no doubt that the dollar will lose its status as a reserve currency. Currently, the dollar is at its highest level, Lawrence MacDonald highlighted.

Lawrence MacDonald sounded the alarm by saying that ‘the West should deploy a strategy of imposing sanctions and the use of SWIFT every ten years. However, they have started using this game against several countries. The sanctions imposed against Russia in war, okay, that’s fine. From a US perspective, the problem is you’ve hit ten different countries over the head with the sanctions card, so you’re forcing these countries to form a bloc against you. That’s what’s happening.’ Furthermore, Lawrence Macdonald has forecast that the US dollar would experience a sharp fall in the next two years.

Last year, Russian President Vladimir Putin alleged the US itself was causing the dollar to lose its status as a reserve currency. In the wake of the Russia-Ukraine war, the US and its allies have imposed massive sanctions on Russia. It also included a ban on using SWIFT – an international payment mechanism. Russia proposed using other leading currencies, including the Ruble, as an alternative. Major countries trading with Russia accepted the proposal and started implementing it.

After that, the International Monetary Fund and US think tanks issued a serious warning about the US dollar. A senior economist at the IMF warned that there is turmoil in the international transactions system, and some countries are thinking about reducing the share of dollars in foreign reserves. On the other hand, US think tanks pointed out that some of the world’s central banks are reconsidering their dependence on the US dollar.