(Bitcoin.com) - Veteran investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, says the U.S. dollar’s time is coming to an end as more countries are seeking alternatives to the USD. “Many friends of America are moving, trying to find something to compete with and ultimately replace the U.S. dollar. It will happen. It has always happened,” he warned.
‘American Dollar’s Time Is Coming to an End,’ Says Rogers
Famed investor Jim Rogers shared why he expects the U.S. dollar to lose its status as the world’s reserve currency in an interview with Sputnik, published Wednesday. Rogers is George Soros’ former business partner who co-founded the Quantum Fund and Soros Fund Management.
“Many friends of America are moving, trying to find something to compete with and ultimately replace the U.S. dollar. It will happen. It has always happened,” the famous investor began. He was quoted as saying:
America’s time is coming to an end. The American dollar’s time is coming to an end.
He explained that the dominance of the U.S. dollar will inevitably decline since “No currency has been on top more than 150 years.” Reiterating that “Nobody has always been on top, so it’s always happened,” he pointed out that “People have moved away from whatever currency it is.”
Why Countries Are Moving Away From USD
Rogers proceeded to detail the reasons why countries are increasingly moving away from the U.S. dollar. The first reason is that the U.S. is the largest debtor nation in the history of the world. “Many people are starting to say: ‘Wait a minute, I don’t know if we want to use that money, because it will have a problem someday,'” he said.
His remarks coincided with the U.S. grappling with a debt crisis that could lead to a default on its debt obligations as early as June 1. Some have warned that a U.S. default could spark a global financial crisis.
Another major reason Rogers mentioned concerns sanctions. The U.S. and its allies have imposed severe sanctions on Russia in response to its invasion of Ukraine, with the most recent round of sanctions announced on Friday. Reiterating his previous warning regarding the weaponization of the U.S. dollar, Rogers described:
The world’s international currency is supposed to be completely neutral. Anybody can use it for anything you want. But now Washington is changing the rules. And if they get angry at you, they cut you off.
He added that the imposition of U.S. sanctions on Russia has expedited the process of de-dollarization, stating: “Even America’s friends are worried that something could happen to them. And so the world is moving more rapidly.”
While emphasizing that “The world is trying to accelerate its move away from the U.S. dollar” and many countries are trying to find a USD alternative, Rogers said: “So far, the world hasn’t found something to replace or even compete with the dollar.” Commenting on whether the Chinese yuan could become the world’s dominant currency, he said: “The Chinese currency, sure you would think, but the Chinese don’t let you buy and sell the currency, it’s not completely converted.”
One of the initiatives aimed at challenging the U.S. dollar’s dominance is the proposed BRICS currency. The BRICS nations (Brazil, Russia, India, China, and South Africa) are collaborating to establish a common currency that would reduce their dependence on the U.S. dollar. The leaders of the BRICS countries are set to discuss this proposal during their upcoming summit in August. The potential success of a BRICS currency is widely seen as a factor that could undermine the dominance of the U.S. dollar.
A growing number of countries are following the BRICS’ de-dollarization lead, including Indonesia and Venezuela. Ten Southeast Asian countries also recently agreed to encourage the use of national currencies in an effort to reduce their reliance on the U.S. dollar and other Western financial systems.
By Kevin Helms
