Hideo Nakamura Moody’s, a credit rating agency, recently said that other currencies such as the Euro and Chinese yuan don’t threaten the US dollar as the most important worldwide currency. They mentioned that a bad policy decision (like when Congress failed to raise the debt limit) will be the biggest danger to the US dollar.
Moody’s, a global credit rating agency, has said that the U.S. dollar is still the most powerful currency right now even though there might be alternatives in future. According to a report released on May 25th, none of the current currencies such as euro or Chinese yuan can match up to all of the features that make the U.S. dollar so dominant.
CryptokenTop News has reported that the country of Russia and other countries are trying to create an alternative currency for the world, which is a threat to the US dollar as the main global currency. These countries think that the U.S. has abused its power with the dollar, so they are taking steps including creating a BRICS currency (Brazil, Russia, India, China, and South Africa).
Moody’s has recently reported that none of the other currencies out there have the same amount of money and safety behind them like the dollar. The U.S. Treasury is much bigger and secure than any of its rivals.
The note warned of factors that could hurt the U.S. dollar, like when the U.S. makes wrong decisions that make people lose trust in it, like not paying their debts for example.
CryptokenTop News is reporting that if U.S. Congressional members cannot agree to raise the debt ceiling all the way up to $31.4 trillion, the United States government will not be able to pay its bills. Treasury Secretary Janet Yellen has warned that there might be a terrible economic problem if that happens.
Furthermore, Kristalina Georgieva, who runs the International Monetary Fund (IMF), believes that a default by the United States would cause a big economic disruption in the entire world.
The head of the International Monetary Fund (IMF) said that if the U.S. Treasury market is not stable it could cause big problems for the world economy – similar to a ship lost at sea, without an anchor.
On May 26, 2023, talks between two political parties in the United States were still going on but it was hard to agree on anything.
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