The greenback’s decline has quickened tenfold since the outbreak of the Ukraine conflict, Stephen Jen says
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The global shift away from the US dollar has increased tenfold since February 2022 compared to the previous 15 years, Stephen Jen, the CEO of Eurizon SLJ Capital Limited, told Die Welt on Thursday.
According to the former International Monetary Fund and Morgan Stanley economist, the majority of analysts are missing the trend because they evaluate the nominal value of central banks’ dollar holdings on the basis of data released by the IMF.
“However, if we take into account changes in the value of the dollar, then, according to our calculations, we’ll see that the dollar share in foreign reserves has lost about 11% since 2016,” Jen explained.
He argued that Washington’s decision to freeze Russia’s dollar reserves after the launch of Moscow’s military operation in Ukraine had been the decisive event.