Views and opinions expressed are for informational purposes only and do not constitute a recommendation by Goldman Sachs Asset Management to buy, sell, or hold any security. This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. There may be additional risks that are not currently foreseen or considered. The above are not an exhaustive list of potential risks. Currency fluctuations will also affect the value of an investment. Such transactions are considered suitable only for investors who are experienced in transactions of that kind. This leverage presents the potential for substantial profits but also entails a high degree of risk including the risk that losses may be similarly substantial. The currency market affords investors a substantial degree of leverage. These risks are heightened in emerging markets. Investments in foreign securities entail special risks such as currency, political, economic, and market risks. “BRIC” refers to Brazil, Russia, India, and China. Until then, we believe de-dollarization will remain a popular headline but an unlikely story.ġBank for International Settlements, as of September 30, 2022.ĢFederal Reserve Economic Data, as of March 30, 2023.ģInternational Monetary Fund, as of July 7, 2022. dollar as the world’s reserve currency and more that multiple other currencies grow in reserve share, as has been the case for the last two decades. If anything, we expect less that a single new contender overtakes the U.S. In our view, de-dollarization poses little risk of changing the global currency order in the foreseeable future, but we also acknowledge that it may be a part of a decades-long trend. 3 These pegged currencies create a substantial moat around the reserve status of the U.S. dollar, with 11 countries using a currency board arrangement and 13 countries (including Saudi Arabia) using a conventional peg arrangement.
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