Goldman CEO Sees No Threat to US Dollar as Reserve Currency

Watch Goldman CEO Sees No Threat to US Dollar as Reserve Currency - Bloomberg on Dailymotion

Transcript

00:00The dollar is down about 11% or so against the euro and some other currencies as well.

00:06This year.

00:07Yeah, this year.

00:07I mean, in the last 15 years, it's up monstrously.

00:09Right.

00:10But do you worry that it's gone down or do you think it was overvalued?

00:13And as a result of it having gone down, you think the chance of a plaza, a chord,

00:17an orchestrated effort to take it down even further is unlikely?

00:21And you think the dollar decline now is okay?

00:24It's adjusted appropriately?

00:25Lee, I think you have to start, David, with a point of view that the dollar

00:32and the relationship between currencies fluctuate.

00:35And, you know, the dollar has been on a pretty good run over a long period of time,

00:38and it's certainly given back this year, given some of the policy actions, some of the gains.

00:42But fundamentally, the dollar is the reserve currency of the world.

00:46I don't see anything at the moment that threatens that.

00:48And even when we were talking about, you know, debt and, you know, our fiscal debt,

00:53when you get around the world and you look at all the capital flows around the world,

00:57global allocators, 50% of their capital is coming into the U.S.,

01:00they might be hedging the dollar a little bit differently now than they might have been for the last few years.

01:05But I think it's more at the margin.

01:06So I think it's something to watch, but I'm not concerned that there's some fundamental shift.

01:11And actually, when you think about digitization and tokenization and access to the dollar,

01:17you know, over time, it's actually allowing easier access to the dollar around the world,

01:21which in the long run is a benefit for the dollar and the dollar's position in the world.