Indian Rupee Could Be The New Dollar, Says ‘Doctor Doom’ Nouriel Roubini

New Delhi: Renowned economist Nouriel Roubini said that with time the Indian rupee could become one of the world’s global reserve currencies.

Dubbed as ‘Doctor Doom’ by Wall Street, Roubini said in an interview to ET Now: “One can see how the rupee can become the go-to for most of the trade that India does with the rest of the world. South-South trade in particular can become a vehicle currency.

“It (Indian rupee) can be a unit of account, it can be a means of payment, it can become a store of value. Certainly, with time, the rupee can become one of the diversity of global reserve currencies in the world. is,” said the economist.

de-dollarization soon

Roubini said that overall the de-dollarization process will take place over time.

He further said that America’s share of the global economy is falling from 40 to 20 per cent. “It doesn’t make sense for the US dollar to account for two thirds of all international financial and trade transactions. Part of it is geopolitics,” Roubini said.

The Economist claimed that the US was “weaponizing the dollar for national security and foreign policy purposes”.

Roubini, known for his tendency toward dire predictions, said that even though there is no other currency yet able to topple the US dollar off its pedestal, the greenback is rapidly losing its competitive edge to the Chinese yuan. .

India will see 7% growth in the medium term

Roubini said India is likely to see a growth of 7 per cent in the medium term.

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“India’s per capita income is so low that in fact with reform, seven per cent is certainly possible, but more than eight per cent. But you have to do many more economic reforms which are structural to achieve that growth rate. And if you achieve it, you can maintain it for at least a few decades. But a lot depends on the policies,” said the economist.