October 20, 2021

US dollar seen remaining dominant

The US dollar will remain the world’s dominant currency despite the growing popularity of the Chinese yuan, analysts told The Manila Times.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort noted that the dollar was still the primary currency being utilized for worldwide trade and other transactions.

He did not, however, dismiss the fact that other major currencies such as the euro had emerged as alternatives to or complement the use of the dollar for activities such as hedging and the composition of foreign exchange reserves.

“The use of the Chinese yuan as a major global currency has also increased over the years, also as a way to diversify from the US currency in various global trade, transactions, and other financial activities,” Ricafort noted.

This was expected, he added, because China had become the world’s…

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