United Nations: Says US Dollar could Collapse
Another day, another bearish dollar story has emerged.
The UN has joined the rhetoric community in lambasting the US dollar.
They warned of a possible crisis of confidence and even a collapse of the US dollar if its value against other currencies continued to decline. According to them, if this collapse were to occur, it would imperil the global financial system. These findings were listed in the UN mid-year review of the world economy.
It also stated that current US dollar trend had been driven in part by interest rate differentials between the US and other major economies.
Rob Vos, a senior UN economist involved with the report, said if emerging markets massively start selling off dollars, then you can have this risk of a slide in the dollar.
We're not saying the collapse is imminent, but the factors are further building up that we could quickly come to that stage if other things are not improving quickly on other fronts - like the risk of the US not being able to service its obligations, he told Reuters.