The Swiss bank "Lard Odieombr" expected that the US dollar will witness a decline against a number of world currencies, which include the euro, Japanese yen and Swiss franc.

Edited by| Tony Wild

Economic  section -  CJ journalist

Bern June,5,2023   

This came in a report published by the official website of the bank, days ago, in which he pointed out that despite the existing attempts by Washington to protect the dollar, but this will end with its decline before the end of the year.

Although the dollar is a global reserve currency, the recent crises witnessed by the world have raised the fears of many countries and prompted them to look for a safe alternative that protects their economy from the dominance of the US currency, which began to decrease in foreign exchange reserves globally.

Global dollar reserves reached their lowest level since 1994, which prompted countries such as China to expand the use of their local currency in international transactions.

Despite this, the dollar still represents a large percentage of the world's foreign currency reserves held in the central banks of countries, because so far there is no global currency that provides the same economic returns that the dollar achieves, according to the report.

"The dominance of the dollar depends on the strength of the US market, which allows the United States to be called the "export of capital" thanks to its enormous purchasing power, which no single country has yet been able to compensate at the global level,"he said.

But with the decline in the purchasing power of the US market and the fall in natural gas prices, and the repercussions of other economic crises such as the debt ceiling crisis and others, there will be negative effects on the strength of the dollar.

Analysts of the bank "Lombard Odier" believe that the advantages that support the strength of the dollar will gradually fade, followed by the decline in the value of the dollar globally, especially with fears of a recession of the US economy.

"This will support other currencies that can be a safe haven for savings, most notably the Japanese yen, Chinese yuan and Swiss franc,"the report continued.

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