US Dollar Faces no Threats From Yuan or Cryptocurrency: Megan Greene

According to Megan Greene, Chief Economist at the Crawl Institute, "King Dollar" impacts trade and there is no danger of losing its dominance in the global market.

The economist said that the US dollar will not lose its status even after its dominance has come into question because of sanctions levelled against Russia. Many western sanctions imposed against Russia are based on the US dollar, which is why many believe that weaponising it could erode its dominance and make currencies like Yuan gain a bigger role.

Central banks will continue to diversify their reserves, but this does not pose a threat to reserve currencies, she said. She said the dollar's share of foreign exchange reserves, which has fallen 12% over the last two decades, is about three times that of the second-ranked Euro.

Two of China's largest state-owned banks have restricted the purchase of Russian goods, especially in dollars, for fear of sanctions violations.

According to the economist, China is also determined to create an offshore dollar-denominated bond market to make it easier for Chinese companies to borrow in dollars. Cryptocurrencies are also not a logical alternative to the US dollar either.