Dollar Will Lose Global Reserve Currency Status, Says Central Bankers

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MoneyNews.com – The U.S. dollar is poised to lose its status as the global reserve currency during the next 25 years, according to a UBS survey of central bank reserve managers.

“Right now there is great concern out there around the financial trajectory that the US is on,” said Larry Hatheway, chief economist at UBS, told the Financial Times, because the dollar has dropped 5 percent so far this year, and is trading close to its lowest ever level against a basket of the world’s major currencies.

This survey stands in sharp contrast to those conducted in previous years, in which the central bank reserve managers said the dollar would retain its status as the sole reserve currency.

UBS queried more than 80 central bank reserve managers, sovereign wealth funds and multilateral institutions. The results pf the survey weren't weighted for assets under management.

The poll findings also indicate a growing role for gold bullion, with 6 percent of those surveyed saying the biggest change in their reserves during the next decade would be adding more gold.