US Dollar dominance end by 2025
Chisinau / Moldova.ORG/ -- World Bank expects the dollar to lose its hegemonic position in the global economy by 2025, but the Yuan and the euro will gain their places in the monetary system.
The dominance of the dollar in international monetary system will end by 2025, building a "new global economy", it said in a report by the World Bank (WB) quoted by Mediafax.
"Currently, the euro and the dollar increasingly compete on the international market," the report said. On the other hand, due to the ongoing development of emerging economies and a more active contribution to cross-border trade and financial activities, it seems that their currencies, especially the yuan, will play an increasingly important role.
"The international monetary system is a system of multiple currencies, centered around of the dollar, euro and yuan," predicts the report. Under this scenario, the dollar will lose its dominant position by 2025.
Developing a multi-polar currency system, by replacing the one based on the dollar, is one of the priorities of French presidency of the G20, which will climax at the Cannes summit in November. "The rapid growth of emerging economies has led to strong economic redistribution centers between developed countries and the developing ones. We're really in a multi polar world", said Central Bank chief economist, Justin Lin Chinese.
According to World Bank estimates, by 2025, half the growth in the global economy will be provided by six emerging countries, namely Brazil, China, South Korea, India, Indonesia and Russia.
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