The Executive Director of Lombard Odier Bank in the Middle East, Radwan Maghraoui, said that the US dollar will remain for a long time the preferred currency of reserves around the world.
Al-Maghrawi added, in an interview with Al-Arabiya, that the global reserves in dollars represent 58% of all total reserves.
He explained that global investors prefer to deal in dollars because the capital market and assets available for trading in a country like China are “few.”
Al-Maghrawi indicated that trading in assets in the world is done through the use of the US dollar, regardless of Russia’s recent decision to pay in rubles for oil sales.
A Lombard Odier report said investors’ search for a safe haven from lower global growth and rising inflation pushed the US dollar to its highest levels since 2002.
The bank added that historically, the dollar is getting stronger with the contraction of global liquidity, which will continue as central banks tighten their monetary policy.
He stressed that there are no alternatives currently challenging the dollar as a reserve currency in the world.