The US dollar this year may lose the status of the main reserve currency. Chinese Sohu analysts point out that the US Federal Reserve has launched trillions of dollars in printing, which seriously worried foreign partners, PolitRussia writes.
Experts note that the US dollar has long begun to lose its popularity, as evidenced by the intentions and attempts of several countries to abandon this currency in mutual settlements.
According to statistics, the state debt Shatov overcame the mark of 26 trillion dollars. Experts predict that by the end of 2020, the figure could grow by another 4 trillion.
The Fed decided that the domestic economy is in dire need of dollars, and went along the simplest path – they turned on the printing press. Chinese experts note that this circumstance negatively affected holders of debt obligations of the US Treasury. Central banks literally “dumped” this asset. In March-April, they sold bonds for $ 477 billion.
Chinese experts emphasize that Britain, Saudi Arabia and Japan, who are considered Washington’s political allies, hurried to get rid of these papers quickly.
“Unexpectedly, the US Federal Reserve is the main investor in the US public debt. She holds more than 4 trillion of these bonds. At the peak of the massive sale of these assets, the Federal Reserve had to increase the purchase of debt bonds to $ 75 billion a day, ”analysts said.
Experts do not exclude that further mass printing of dollars and the Fed’s activity in buying bonds, which even partners are actively getting rid of, could lead to the end of the “dollar dictatorship”.