CNBC joins the media chorus questioning how much longer the US dollar will retain global reserve currency status. The status of the dollar is called into question throughout this article.
Here are some quotes from the article:
" While the United States can't claim that it might be losing a friend with Russia's pivot east, it might be a different story for the dollar, with the alliance having the potential to undercut the domination of the U.S. currency."
"Taken alone, these actions do not mean the end of the dollar as the leading global reserve currency. But, taken in the context of many other actions around the world including Saudi Arabia's frustration with U.S. foreign policy toward Iran, and China's voracious appetite for gold, these actions are meaningful steps away from the dollar," Jim Rickards, portfolio manager at West Shore Group and partner at Tangent Capital Partners, told CNBC via email."
"Despite the details for the deal being scarce, many analysts predict that the oil exports would mean Chinese yuan being exchanged directly, into the Russian ruble. Thus the two countries would bypass the U.S. dollar - the traditional currency used in oil trades and considered to be the international reserve currency of choice."
"With the two developing nations trading outside of the U.S. dollar, many questions are being raised about what this would do for the greenback and for the U.S. The dollar's status as the global reserve currency has allowed the U.S. to borrow large sums of money, effectively living beyond its means, because there is always a demand for its currency."