Dollar's Demise?

After Russia and China, today the Indian view on the dollar was made public. Bloomberg reports quoted Suresh Tendulkar, an economic adviser to Prime Minister Manmohan Singh, that he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars.

“The major part of Indian reserves is in dollars -- that is something that’s a problem for us,” Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said.

Already China and Russia have stepped up calls for a rethink of how global currency reserves are composed and managed, underlining a power shift to emerging markets from the developed nations that spawned the financial crisis.

The realization about the consequence of the huge US debt is just about being comprehended. As this grows you can expect the hold of the dollar as a reserve currency to weaken considerably.