Stephen Roach, Senior Fellow at Yale University and former Chairman of Morgan Stanley Asia, cautions US dollar buyers.
Roach's comments follow a similar topical article he wrote in Bloomberg last week in which he specifically stated that "the era of 'exorbitant privileges' of the US dollar as the world's major reserve currency is coming to an end. In this article, the economist pointed out that the U.S. economy has already been "weakened" by the impact of the COVID-19 pandemic, and suggested that the recession hit the U.S. back in February against the backdrop of a health crisis that would only exacerbate the dollar's troubles. The financial expert said that the rest of the "world has serious doubts about the once widely accepted presumption of American exclusivity". Roach said on Monday that the U.S. financial deficit, as the government spends trillions of dollars to cushion the damage from COVID-19, could only exacerbate the dollar.
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