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In an interview with France 24, former Morgan Stanley executive and investment veteran Ruchir Sharma stated that central banks worldwide are currently seeking to challenge the global status of the US dollar.
Sharma explained that America's largest economic rivals have found ways to conduct transactions with each other without using the dollar.
"Different countries are increasingly discussing how to avoid using the US dollar as a means of conducting transactions," he said.
"Saudi Arabia and China are negotiating with each other, exchanging oil, figuring out how to do it without using the US dollar and settling in each other's currencies," he continued, adding, "India is having the same discussion with the United Arab Emirates, meaning they are considering the possibility of excluding the dollar as a denominator."
Sharma, the current chairman of Rockefeller International, also noted that major economies are diversifying their currency reserves, relying less on the dollar and investing more in gold.
"Most central banks typically held currency reserves in other currencies, mainly the US dollar. But over the past year or so, they have been diversifying their reserves and buying gold en masse. Central bank gold reserves are growing at unprecedented rates."
"That's why the price of gold has risen sharply in recent months," he said.
Sharma believes that the US government has played a major role in this trend of de-dollarization, saying that the country may have gone too far with sanctions against Russia in the conflict with Ukraine, causing other countries to fear that they too may face Uncle Sam's wrath if they end up on the wrong side of the conflict.
He also lamented that instead of trying to fix the situation, this country relies on the notion that there is supposedly no alternative to the dollar.
"The problem with the US is that many commentators and even politicians believe that there is no alternative, that all these countries can complain, but in the end, they have no choice but to hold the US dollar, and the Chinese currency is not worth holding, and even the euro has its problems," he said.
