Dr. Doom Warns of US Dollar’s Demise, Rise of Bipolar Currency System

•Nouriel Roubini, known as ‚Dr. Doom‘, has predicted the fall of the US dollar in a „bipolar“ world, with the Chinese renminbi potentially taking its place.
•Roubini points to the increased weaponization of the dollar by tight restrictions set by the US government on its rivals, as well as vulnerabilities posed to non-US countries and economies that use the dollar.
•Roubini also mentions that Saudi Arabia has already settled transactions using Chinese renminbi which could encourage other countries in the region to do so.

Nouriel Roubini’s Prediction

Nouriel Roubini, an economist known for his accurate predictions regarding the 2008 housing crisis and nicknamed „Dr. Doom,“ has warned about a potential demise of U.S. dollar and rise of a „bipolar currency regime“. He believes that this shift is caused by increased weaponization of U.S. dollar through restrictions set by U.S government on its rivals and vulnerabilities posed to non-US countries using it as their currency system.

Weaponization of U.S Dollar

Roubini claims that U.S is increasingly trying to weaponize its own currency through primary and secondary financial sanctions which puts emerging market economies at disadvantage, without having any say in issuance or monetary control decisions driven by domestic factors such as inflation in US economy .

Saudi Arabia Settles Transactions With Renminbi

The Iranian-American economist also mentioned that Saudi Arabia is settling transactions using Chinese renminbi which could influence other countries in Middle East region to follow suit . This could create a ripple effect leading towards de-dollarisation efforts being adopted by different countries across globe due to increasing geopolitical rivalry between West & revisionist powers such China , Russia , Iran & North Korea .

Projects Aiming At Dedollarisation

In July 2020 , BRICS bloc revealed they are working towards creating their own currency in order dethrone influence of International Monetary Fund (IMF) & US over their respective economies . This move was seen as an attempt to replace US Dollar from international settlements . There have been several projects since then seeking substitution for greenback from global markets .


Based on Nouriel Roubini’s analysis , de-dollarisation trend is likely going to accelerate in next decade due to increasing weaponization of US Dollar for national security purposes & growing geopolitical rivalry between West & revisionist powers . Major fallout from this switch will be increased vulnerability for emerging market economies due changes in US monetary policy driven domestically due inflationary pressures etc .