Nearly 80 percent of respondents in the survey expressed deep concerns about the sustainability of US government finances, highlighting an increasing reliance on unfunded budget deficits.
Olivier Fines, CFA, head of Advocacy for EMEA at the CFA Institute, emphasized, “[The survey results] signal great concern about the lack of fiscal discipline in the world’s largest economy and the potential implications for the role of the US dollar as the preeminent reserve currency, on which global financial stability is still dependent.”
According to survey, two-thirds of respondents predict that the US dollar will lose its reserve currency status within the next 5 to 15 years.
The most common projection from respondents was a transition to a multipolar currency system, while some also believed that a digital currency or a hard currency, such as gold, could replace the US dollar as the dominant global reserve currency.
Paul Andrews, managing director for Research, Advocacy, and Standards at CFA Institute, commented on the privilege the US dollar currently enjoys.
