Eminent economist Stephen Roach suggests a 35% fall in the US dollar due to the widening national deficit and reducing savings. The expert does not recommend buying the US dollar.

The US currency may weaken over the coming few years amid the souring trade relations with China. The US is focused on separation from the rest of the world, the country is avoiding globalization. This, in turn, could be the end of the US dollar dominance. The economist is confident that the dollar could drop very sharply, because the administration spends trillions of dollars to mitigate the consequences of COVID-19.

Roach published an article in which he stated that the coronavirus pandemic has greatly weakened the US economy. Besides, he supposes that at the beginning of 2020, the country already entered recession amid a health crisis that would only make the greenback weaker.

However, the financial expert believes that the Chinese currency is becoming more attractive for investors, because China is undergoing economic reforms. The country is moving away from a heavy industrial economy to one that is focused on services. In other words, economic growth will be based on consumer spending.

The dollar is the world's reserve currency, because it is believed that the United States is a country with a stable economy. Nevertheless, the situation is changing. The growing deficit would ultimately strike the dollar. In his opinion, even a change of the US power in November would not improve the situation.