NEW YORK (Realist English). The dollar is strengthening as the crisis in Ukraine worsens, CNBC reports.
“We tend to think that nothing could ever dislodge the dollar from this preeminent status as the world’s currency. I think that view is overblown and ultimately will be challenged.” points out Stephen Roach, a senior fellow at Yale’s Jackson Institute for Global Affairs.
Experts interviewed by CNBC believe that the US dollar is still far from its collapse.
“I think the chances of that happening in my lifetime are negligible. When we’ve seen concerns about events in the global economy, whether it’s the economy or geopolitical events, the dollar has gone up, not down. It’s seen as a safe haven. … as we’ve seen with the outbreak of the war in Ukraine, the dollar has actually tended to go up as investors look to the most liquid and safest markets to put their money in.” said Kathy Jones, managing director at Schwab Center for Financial Research.
According to analysts, the US markets play a significant role in maintaining the international position of the dollar.
“A dollar collapse actually is quite unlikely because the implication of a dollar collapse is that you would have a real search for safety. And the only really safe place to put lots of money remains the U.S.” argued Eswar Prasad, a senior fellow at the Brookings Institution.
On April 8, the dollar exchange rate was 76.2 rubles. A day earlier, the US currency was worth 82.5 rubles.
