Gold is becoming the new currency of the world, dollar losing its grip. For some time now, there have been signs of de-dollarisation in the world. Due to the continuous strengthening of the dollar, almost all the countries, especially the developing ones, have suffered hugely. The Government of India and the Reserve Bank of India have been constantly trying to increase the role of the rupee in international payments.
#goldreserves #gold #goldprice #dollar #dedollarization #china #india #USDollar #Goldpricehike #globalcurrency
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#goldreserves #gold #goldprice #dollar #dedollarization #china #india #USDollar #Goldpricehike #globalcurrency
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NewsTranscript
00:00 You must be hearing that the Indian rupee has weakened or strengthened against the dollar.
00:05 But now the news is that the dollar is itself weakening.
00:09 All over the world, the importance of the dollar is decreasing and the world is now moving towards a new currency.
00:15 The entire world's government is running after a new currency, leaving behind the dollar.
00:19 But why did this happen?
00:21 Why did this happen and which currency is being discussed?
00:25 Let's find out in detail in this video.
00:27 Hi, this is Bhavna and you are watching.
00:29 Good returns.
00:30 First, we will understand the background.
00:33 Since the first world war, the importance of the dollar was increasing continuously in the world.
00:38 During the war, American allies used to give it gold instead of imports.
00:42 And the United States officially became the world's largest gold reserve country.
00:47 After the war, most countries started linking their currency with the dollar.
00:53 And with this gold standard ended, the value of gold decreased a little.
00:57 The dollar became the most preferred currency.
00:59 All nations started maintaining their foreign exchange reserves in the form of dollars.
01:05 And thus by 1999, the share of the dollar increased 71% in the world's total foreign exchange reserves.
01:14 At the same time, European nations adopted a common currency for themselves, which is called the euro.
01:20 Due to this, the importance of the dollar decreased a little due to the European countries being their own currency and doing business in the euro.
01:27 According to the International Monetary Fund, IMF, in 1999, the share of the dollar was 71% in the global reserve.
01:36 By 2010, it fell to 62% and by 2020, it was 58.41%.
01:43 However, in comparison to other currencies, the dollar was strong.
01:47 In 1964, the dollar was at the level of 4.66, which is now at 3.4 rupees.
01:55 The position of the euro is at another level.
01:57 But for some time now, the importance of the dollar is decreasing again, i.e. de-dollarization is taking place.
02:04 The Government of India and the Reserve Bank of India are now working with other countries to strengthen their business in rupees.
02:11 So far, an agreement has been made with 20 countries.
02:14 After the Russian-Ukraine war, America and Europe imposed sanctions on Russia.
02:19 After this, the local currency business was also forced to work. India also did business in rupees worth $ 20 billion.
02:27 Not only that, America also declared the dollar reserve as invalid from Russia.
02:31 After this, the fear of this happening to other countries also settled.
02:36 After this incident with Russia, other countries also changed their strategy.
02:40 The strategy changed in two ways.
02:42 One is payment in local currencies and second, increase in gold reserves in place of dollars.
02:48 If we talk about India, in the first week of April, the share of gold in the total foreign exchange reserves reached $ 55.8 billion.
02:56 The Reserve Bank is buying gold in a hurry.
02:59 As a result, in a single week, it bought gold worth $ 1.24 billion.
03:05 In comparison to last year, the country's gold stock has now reached 13 tons.
03:09 India has now reached the 9th position in the gold reserve.
03:13 The RBI has also officially confirmed that its priority is gold reserves.
03:18 According to the World Gold Council data, in 2021, where the countries of the world bought 450.1 tons of gold,
03:26 in 2022, it increased by 3 times to 1135.7 tons and in 2023, it reached 1037 tons.
03:37 In the past 2 to 3 years, the price of gold has been increasing continuously.
03:41 In just 6 years, the price of gold has increased by 68%.
03:45 In 2018, the average price of gold was $ 1268.93 per ounce, which has now reached $ 2126.82 per ounce in 2024.
03:57 Now the question is, why is the preference for gold increasing?
04:01 So, in the last few years, the demand for gold has increased a lot, due to which the prices have also increased.
04:08 In 1988, the price of gold was $ 437 per ounce, which increased to $ 1268.93 per ounce by 2018.
04:17 In this way, in 30 years, the annual increase was 3.61%.
04:22 But in the last 6 years, the price of gold has increased by 9.7%.
04:27 Experts believe that this is due to the changes in global monetary and financial conditions.
04:32 The first reason is that the US Federal Reserve has indicated a reduction in the interest rate.
04:37 By reducing the interest rate, people's interest in gold increases compared to other financial assets.
04:43 We can say that the demand for gold will increase as the interest rate decreases.
04:48 The next reason is that central banks around the world, including China, are buying more and more gold.
04:54 And this trend is expected to continue.
04:57 The third reason is that the gold prices will increase in the world.
05:01 This will also increase the interest in buying gold from central banks.
05:04 Because if central banks increase the amount of gold in their foreign exchange reserves,
05:09 then the value of foreign exchange reserves will increase as its prices increase.
05:13 Now, some questions are raised by the increase in gold demand.
05:17 The most important of which is, will the dominance of the dollar end?
05:21 Second, will the importance of gold increase in international transactions?
05:26 Well, only time can answer these questions.
05:29 But it is clear that the world is definitely moving towards de-dollarization as emerging economies are trying to settle their foreign trade in their domestic currencies.
05:38 So, what do you think?
05:40 If we talk about gold these days, then the rate of gold has reached almost 75,000.
05:45 And in the coming days, it is expected that the rate will reach around 78,000 by the end of this year.
05:52 So, the way countries around the world are buying gold and filling their reserves,
05:57 it seems that the dominance of the dollar can slowly decrease.
06:02 What do you think? Do tell us in the comments.
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06:11 Thank you for watching.