Is the dollar’s ‘exorbitant privilege’ coming to an end?

JPMorganChase/Craig Cohen

Graphic of blended images on various national currencies

“There is nothing to suggest that the dollar dominance should remain in perpetuity. In fact, the dominant international currency has changed many times throughout history going back thousands of years as the world’s economic center has shifted. After the end of World War II, the U.S. accounted for biggest share of world GDP at more than 25%. This number is brought to more than 40% when we include Western European powers. Since then, the main driver of economic growth has shifted eastwards towards Asia at the expense of the U.S. and the West.”

USAGOLD note:  We made reference to this JP Morgan analysis on the US dollar in yesterday’s DMR. JPM suggests that its clients diversify dollar exposure by shifting to other developed market currencies and precious metals. It says that aforementioned shift away from the dollar is already under way.

Repost from 7-25-2019

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