Kotak also emphasised via a tweet that his wording was unintentional before the compliments and abuse could start. It was unclear if he felt bad about what he said. At least from the vantage point of the tall podium, the term terrorist cannot and should not be used loosely.
Source: The Balance
The almighty dollar’s excessive status as the world’s reserve currency, according to Kotak, was his point. That, however, misses the point that none of the 145 nations with dollar reserves are coerced or terrorised into keeping their reserves in US dollars. They are acting on their own free will. The majority of the world’s reserves, which total around $13 trillion, are stored in dollar-denominated securities.
China, currently the United States’ top strategic rival, has the largest stockpile of dollar reserves. The remaining 20% of the world’s reserves are held in euros. The remaining amounts are five percent each of Japanese yen and British pound sterling. A meagre 3% of reserves are stored in Chinese yuan, most likely by nations that trade with or owe money to China.
The US currency is at its highest point in fifty years. Therefore, the pressure of higher import costs is felt by those nations whose imports are invoiced in dollars. They already have substantial inflation as a result of rising commodities and oil prices, which are also expressed in US dollars. The cost of debt servicing has increased as the currency has strengthened, making those nations with dollar-based foreign loans unhappy as well. The entire global financial flow is moving uphill towards America from less developed nations, which is why the dollar is strengthening.
Source: Study IQ IAS
That is as a result of a sharp increase in the yield on US government bonds. US bonds are a secure place for investors to keep their money during economic downturns. As a result, there is a high demand for the dollar.
It is a conscious decision to choose the US dollar as the preferred currency for reserves totaling 60% of all reserves. The effort to wean the globe off its reliance on the dollar is ongoing. However, eight nations have made the dollar their official currency, and 22 more have pegged their currencies to it. Argentina might revert to a dollar-based currency. Addiction to dollars may be problematic, but terrorism is not. The dollar’s demise is still many years off.
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