Nouriel Roubini, Professor Emeritus at New York University Stern School of Business. Reuters.
New Delhi: The Indian rupee over time could become one of the global reserve currencies in the world, noted economist Nouriel Roubini said.
Nicknamed as ‘Doctor Doom’ by Wall Street, Roubini in an interview to ET Now said: “One can see how the rupiah could become for some of the trade that India does with the rest of the world, especially South-South trade could become a vehicle currency.”
“It (Indian rupee) could be a unit of account, it could be a means of payment, it could become a store of value. Certainly, rupiah over time could become one of the variety of global reserve currencies in the world,” the economist said.
De-dollarization soon
Roubini said overall there will be a process of de-dollarization over time.
He further said the share of global economy of the US is falling from 40 to 20 per cent. “Doesn’t make sense for the US dollar to be two thirds of all international financial and trade transactions. Part of it is geopolitics,” Roubini added.
The economist claimed the US is “weaponising the dollar for national security and foreign policy objectives”.
Earlier this month, Roubini in an interview to Financial Times said the US dollar’s status as the world’s main currency is in jeopardy.
Also Read: US dollar fast losing out to the Chinese yuan, says ‘Doctor Doom’ Nouriel Roubini
Known for his tendency toward grim predictions, Roubini said even though there isn’t any other currency yet which is capable of knocking the US dollar off its pedestal, the greenback is rapidly losing its competitive edge to the Chinese yuan.
India to witness 7% growth in medium term
Roubini said India is likely to see 7 per cent growth in the medium term.
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“The per capita income of India is low enough that actually with reform, certainly seven per cent is possible, but even more than eight per cent. But you have to do many more economic reforms that are structural to achieve that growth rate. And if you achieve it, you could maintain it for at least a couple of decades. But depends very much on policies,” the economist said.
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