The Throne of the Dollar Will Not Be Shaken Easily

Experts are of the opinion that Russia diversified its assets before the invasion of Ukraine, but this effort was limited. The large investment funds made by the United States underline that there is no currency that can replace the dollar. Regarding gold, he thinks that it is used as an investment tool, but if it replaces a payment instrument, the dollar will still be at the beginning and end of the chain and will continue to maintain its place.

Investors, who focused on the issue after the concerns about Russia's access to foreign currency assets after the freezing of dollar assets by the USA, noted that it would not be as easy as said to dethrone the dollar.

According to Bloomberg's report, the emergence of the issue revealed the claims that China will double its efforts to bail out its economy from the dollar-based financial system.

Baring Investment Services Ltd. European Strategist Agnes Belaisch said, "Even though the Central Bank of Russia has reduced its dollar assets and turned to alternative assets such as gold, recent events have shown that these efforts are in vain. Holding non-dollar assets is dependent on other parties accepting them as a means of payment. Just as Bitcoin cannot be used as a large-scale payment instrument, it also cannot be paid with gold. There are dollars at the beginning and end of payment chains."

While banks like Goldman Sachs and Credit Suisse are tracking threats to the dollar's supremacy, mutual funds like Brandywine Global and JPMorgan say finding a viable substitute for it will have a very compelling effect.

Mark Mobius, founder of Mobius Capital Partners and an experienced market expert for 40 years, said, "At this stage of the game, there is still no viable currency that can be an alternative to the dollar. It is still very strong and it is likely to get stronger if tensions continue to escalate."

A wealth management strategist at JPMorgan, Kerry Craig, said, "You can buy yen, euros, or Australian dollars, but I don't think any of them can really replace the dollar. The United States remains the dominant force on the global economic scene."