Economists anticipate a growing shift in global power dynamics as the expanded BRICs+ bloc increasingly challenges the influence of the US and Europe. This shift is accompanied by a gradual decline in the US dollar’s dominance as the world’s primary reserve currency. While the dollar still plays a central role—accounting for over half of global reserves, around 50% of international payments, and roughly 80% of foreign exchange transactions—its relative position has been eroding. Pictet Asset Management expects the USD to depreciate materially over the next five years.
“Economic nationalism and isolation are growth-killers in the long run and are certain to reduce the appeal of the dollar among international investors,” says Luca Paolini, Pictet’s Chief Strategist.
Read the full assessment here.
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