In a Bloomberg interview, economist Nassim Taleb expressed his view that the US dollar has significantly lost its status as the world's reserve currency. He noted that many investors are starting to seek safer assets, such as gold.
Loss of Trust in the Dollar
Taleb pointed out that the sanctions imposed by the US against Russia due to its invasion of Ukraine have harmed the credibility of the dollar. He stated that this situation threatens the dollar's function as a reserve currency. The inability of the dollar to maintain its value is pushing investors towards other assets, such as stocks.
Reasons for Growing Interest in Gold
According to Taleb, even those not connected to Putin have begun distancing themselves from the dollar and euro, leading to a noticeable shift in the reserves of countries and investors. "Gold is currently effectively a reserve currency. Transactions are generally conducted in dollars, but they’re converted back to gold," Taleb said. This transformation became evident especially after the freezing of accounts linked to the Russian leader.
Consequences of Market Changes
Analysts interpret Taleb's evaluations as indicative of shifting power dynamics in the international financial system. Economic experts suggest that the risks facing the dollar might have diverse economic and political implications. As geopolitical tensions rise, the growing interest in gold may fuel new trends in portfolio diversification.
Taleb emphasizes that for the dollar to maintain its status as a reserve currency, it is crucial to restore confidence through strategic financial and political measures. Additionally, investors and economic managers should closely monitor changing preferences in international markets.
