RAY DALIO ON CHINESE YUAN

Introduction:-

  • Raymond Thomas Dalio is an American billionaire investor and hedge fund manager, who has served as co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater in 1971 in New York.
  • Dalio is regarded as one of the greatest innovators in the finance world, having popularized many commonly used practices, such as risk parity, currency overlay, portable alpha, and global inflation-indexed bond management

Ray Dalio On Chinese Yuan:-

  • Ray Dalio accepted an interview with CNBC recently, where he said that he is certain that the US will launch a digital dollar one day, and it will be a viable CBDC. He, however, said that the digital yuan would outpace the digital dollar.
  • The Chinese yuan will become a global reserve currency sooner than most people expect, said billionaire investor Ray Dalio.
  • The U.S. dollar is currently the world’s reserve currency, but billionaire hedge fund manager Dalio said the yuan’s role could grow much bigger in the next few years.
  • I think we’re going to enter a world in which people will be thinking which currency, and the ones that have the best fundamentals will be the ones that will be most competitive and that’ll be threatening to countries,” said Dalio.
  • China is currently the world’s largest trading nation, meaning it is the number one country in exports and imports. Dalio expects more trade and more financial transactions to be denominated in yuan.
  • I think you’re going to see the renminbi become a more significant, a strong currency, stable currency, more attractive-returning currency, and also a more widely used currency … in the years ahead,” said Dalio.
  • Currently, the dollar is the world’s largest reserve currency with a share of nearly 60%, according to data from the International Monetary Fund (IMF). China’s yuan currently has a share of about 2%, behind the euro, Japanese yen, and British pound, per the IMF data. But Dalio expects the yuan share to increase to around 10% to 15% in five to 10 years‘ time
  • I think incrementally it will happen faster probably than most people expect,” he said. “A lot has to do not just with what China does. It has to do with what the dollar does.”

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