The dominance of the US dollar may end soon, and soon the fall of the US currency can reach 35% against its main competitors, based on the figures for the increase in the US budget deficit. The gap between the United States and trading partners and China's economic policy aimed at strengthening the global presence provides the basis for a sharp weakening of the US currency in the next 3-5 years, which is likely to undermine the dollar’s reputation as the main global reserve currency.
Yale University experts warn that if the dollar starts to decline, it will be like a collapse, swift and powerful. There is an opinion that since the US economy is already “weakened” by the impact of the COVID-19 pandemic, the US recession has already begun in February 2020. The health industry crisis that has arisen, in this case will only aggravate the dollar’s problems.
The US government spends trillions of dollars on mitigating the effects of the pandemic, and this exacerbates the budget deficit and puts pressure on the dollar. But the worst thing for the dollar is doubts about its impeccable reputation. Such doubts are already gaining strength in the world.
At the same time, China is restructuring its economic model from production to service, which implies development at the expense of consumers. Consequently, the yuan can gain popularity among investors. In addition, Trump's policy of devaluing the dollar also reinforces this trend.