De-Dollarization Is Happening at a ‘Stunning’ Pace, Jen Says
- Dollar’s reserve currency status has fallen precipitously: Jen
- Greenback represents 58% of reserves, down from 73% in 2001
This article is for subscribers only.
The dollar is losing its reserve status at a faster pace than generally accepted as many analysts have failed to account for last year’s wild exchange rate moves, according to Stephen Jen.
The greenback’s share in global reserves slid last year at 10 times the average speed of the past two decades as a number of countries looked for alternatives after Russia’s invasion of Ukraine triggered sanctions, Jen and his Eurizon SLJ Capital Ltd. colleague Joana Freire wrote in a note. Adjusting for exchange rate movements, the dollar has lost about 11% of its market share since 2016 and double that amount since 2008, they said.