Value of United States dollar dropped by 86 per cent in 50 years: Report
A new report has revealed that the value of the United States dollar plummeted by 86 per cent in the last 50 years.
In the report released on Monday, Finbold, a London-based analytics firm, disclosed that the U.S. dollar depreciated by sixfold over the past 50 years, dropping to $0.14 in 2022.
“The value of the United States dollar has fallen considerably in recent years, raising questions over the dollar’s long-term viability as a safe-haven currency,” Finbold said.
“The U.S. dollar has depreciated sixfold over the past 50 years. In 1972, the worth of one dollar was $1, but by 2022, the value of a dollar has dropped by an incredible 86%, to $0.14,” it added.
The report details that a dollar in 1972 is now valued at $6.99 as of today.
Finbold explained that the decline directly reduces the purchasing power of the dollar.
It explained that a dollar will buy fewer items at the grocery store than it previously would otherwise.
Justinas Baltrusaitis, author of the Finbold report, cited the declining dollar value as one of the main factors responsible for the increased investments in cryptocurrencies.
However, as the value of the dollar continues to decline, there is fear that its standing as a safe-haven currency may be eroded relatively soon.
Peoples Gazette had earlier reported that Saudi Arabia was actively negotiating with Beijing to price part of its oil sales to China in yuan.
The move if successful would erode the U.S. dollar’s supremacy in the global petroleum market, indicating yet another shift toward Asia by the world’s top crude exporter.
The vast bulk of worldwide oil sales, roughly 80 per cent, are conducted in dollars, and the Saudis have done so solely since 1974, when they struck a deal with the Nixon administration that provided security guarantees for the country.
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