Dollar's status as single reserve currency will end by 2025

The United States dollar status as the world’s single reserve currency will end by 2025, according to a new report by the World Bank.

“By 2025, six major emerging economies—Brazil, China, India, Indonesia, South Korea, and Russia—will account for more than half of all global growth, and the international monetary system will likely no longer be dominated by a single currency. As economic power shifts, these successful economies will help drive growth in lower income countries through cross-border commercial and financial transactions.” the report noted.

Mansoor Dailami, lead author of the report and manager of emerging trends at the World Bank, commented that “Over the next decade or so, China’s size and the rapid globalization of its corporations and banks will likely mean a more important role for the Yuan. The most likely global currency scenario in 2025 will be a multi-currency one centered round the dollar, the euro, and the Yuan.”

The report “Global Development Horizons 2011” states that global growth over the next 15 years is likely to mirror the current recovery, with emerging and developing countries growing faster than more advanced counterparts. The bank projects emerging economies to grow an average of 4.7% a year through 2025, more than double the 2.3% forecast for advanced economies.

“The distribution of global growth will become more diffuse, with no single country dominating the global economic scene,” the report said. By 2025, the economies of Brazil, China, India, Indonesia, South Korea and Russia will represent more than half of all global growth, the bank forecasts.

Source: MercoPress.com