STORY: Share of U.S. dollar as foreign exchange reserve would decrease over time: Slovak analyst
DATELINE: June 19, 2023
LENGTH: 00:01:29
LOCATION: Bratislava
CATEGORY: SOCIETY

SHOTLIST:
1. various of the views in U.S.
2. SOUNDBITE 1 (Slovak): STANISLAV PANIS, Analyst of the J&T Banka Slovak investment bank

STORYLINE:

The share of the dollar as the foreign exchange reserve worldwide would decrease over time, together with the number of global trade transactions carried out with it, said an analyst with a Slovak investment bank.

SOUNDBITE 1 (Slovak): STANISLAV PANIS, Analyst of the J&T Banka Slovak investment bank
"The position of the U.S. dollar is not in jeopardy because it is still the undisputed global reserve currency and I see nothing in the foreseeable future that could challenge it or substitute it.
The only thing that already started is the fact that the share of the dollar as the foreign exchange reserve is decreasing.
The dominance of the dollar will decrease but it doesn't mean that it will lose the position of the global leader.
Currently, the U.S. is relatively high in debt compared to its GDP, similar to the period after the war (World War II).
Of course, there should be some kind of restriction on the debt. Because if it keeps growing in relation to the GDP, various complicated situations could arise in the future. It could lead to a slowdown in economic growth.
And it can lead to a situation where the American public policy tries to buy out this debt by increasing inflation."

Xinhua News Agency correspondents reporting from Bratislava.
(XHTV)