BRICS: Warren Buffet's Prediction on the Future of the USD

In an effort to challenge the U.S. dollar's status as the global reserve currency, the BRICS alliance is pushing for trade settlements in local currencies. This move, which includes using local currencies for oil and gas trade, poses a threat to the USD and its ability to fund its deficit. Warren Buffet, a renowned investor, has offered his prediction on how long the U.S. dollar will continue to dominate as the world's reserve currency.

According to Buffet, who made his prediction in 2015 to Business Insider, the USD will maintain its supremacy in international markets for at least 50 years. In other words, Buffet believes that the U.S. dollar will remain the world's reserve currency until at least 2065. The billionaire investor confidently stated, "We are the reserve currency. I see no option for any other currency to be the reserve currency."

Buffet emphasized his belief in the USD's long-term prospects, stating, "I think the dollar will be the world's reserve currency 50 years from now. I think the probabilities of that are very high." In fact, Buffet expressed such confidence in his prediction that he stated he would be willing to bet a significant amount of money on it. However, he also acknowledged that nothing is certain, but his conviction in the USD's continued dominance remains strong.

Also Read: BRICS To Officially Abandon US Dollar

Buffet dismissed the idea that currencies such as the Chinese Yuan, Indian Rupee, or Russian Ruble could challenge the USD's position. He firmly stated, "I think China and the United States will be the two super-economic powers. But I think it's extremely unlikely that any currency supplants the U.S. dollar as the world reserve currency for many decades, if ever."

Warren Buffet's prediction on the future of the USD suggests that the U.S. dollar will remain the world's reserve currency for at least the next 50 years. Despite the rise of other global economic powers, Buffet believes that the USD's position is secure and that no other currency will come close to challenging its dominance.