JP Morgan Chase: Dollar may lose the status of world reserve currency

In the foreseeable future, the dollar may lose the status of the world reserve currency, which will lead to a weakening of the US currency in the medium term, analysts at JP Morgan Chase investment bank say.

They say the reason is that the driver of world economic growth has shifted towards Asia. China is now at the epicenter of this recent economic shift caused by the country's rapid development and commitment to domestic reform.

Over the past 70 years, China has increased its share in world GDP by 4 times, to almost 20 percent, which is almost equal to the United States. The country has evolved from a manufacturer of cheap goods into a country with a developed technological market. In this regard, analysts predict that in the coming decades, the global economy will move from the dominance of the United States and the dollar to a system in which Asia has more power. As a result, the dollar will become cheaper relative to a basket of other currencies, including gold.