Goldman Sachs says real concerns about USD as reserve currency. Barclays says No.
GS is alarmed, says "Real concerns about the future of the US Dollar as the world's reserve currency have started to emerge."
Barclays says nope, the US "isn't anywhere close to losing its reserve currency status". Barclays cite:
- "depth of capital markets and overwhelming volume of USD denominated global transactions"
On the recent decline in the dollar:
- "Reserve managers and investors have spent the better part of the last few years accumulating USD assets and with the recent developments, simply find it prudent to diversify into less USD denominated exposures"
I'm with Barclays on this one.