The share of the dollar in global reserves
The US dollar in global currency reserves is at its lowest level since 1995. Financial expert Oleksiy Kozyrev explained that there is no need to panic about this, as the reason is fluctuations in the exchange rate and calculation methods, not a mass rejection of the dollar.
This issue concerns all of you very much. You all then write to me that it is necessary to get rid of the dollar right now. I want to say right away that there is no need to get rid of the dollar. It remains the number one global currency, and this situation will not change globally in the coming years.
According to the International Monetary Fund, the decrease in the share of the dollar in global reserves is the result of the strengthening of other currencies, not a rejection by central banks of the American currency.
Reasons for the dollar's decline
The main reason for the dollar's decline lies in the sharp decrease in its exchange rate compared to other currencies. Currency exchange changes account for 92% according to Oleksiy Kozyrev.
Among other factors that pressure the dollar, the expert mentioned trade wars, Trump's policy, and other global processes leading to uncertainty in financial markets.
Forecast for the dollar and euro exchange rates
The expert provided a forecast for the Ukrainian currency market for the upcoming week:
- Cashless market: dollar in the range of 41.15-41.70 UAH/$, euro - 47.75-48.60 UAH/€.
- Cash market: banks will offer the dollar at 41.00-41.90 UAH/$ and euro - 47.50-48.80 UAH/€.
The expert also noted that on Monday, October 13, there is a holiday in the USA, which may affect activity in the currency market.
Recall that the National Bank of Ukraine explained the prospects of switching to euro instead of the dollar.
The dollar is losing its position in global currency reserves, but this is not a cause for serious concern. The dollar's decline is associated with a sharp drop in its exchange rate and the influence of geopolitical factors on financial markets. Experts provide forecasts for the Ukrainian currency market, advise not to panic, and to monitor further changes on this front.