Survey: Dollar's Global Reserve Status in Jeopardy

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More than half of financial managers recently polled predicted that within the next 25 years the dollar will be replaced by different currencies, according to a report by The Financial Times.

Swiss megabank UBD conducted the survey of 80 central bank reserve managers, who control about $8 trillion in the world's financial institutions.

"The results of the survey are the latest sign of dissatisfaction with the dollar as a reserve currency, amid concerns over the U.S. government's inability to rein in spending and the Federal Reserve's huge expansion of its balance sheet," the financial publication reported.

In previous surveys, managers said the dollar would retain its status as the reserve currency. But this departure could point to growing concerns over the U.S. spending crisis.

"Right now there is great concern out there around the financial trajectory that the U.S. is on," UBS Chief Economist Larry Hatheway told the Times.

Russia and China's central financial institutions recently signed an agreement to conduct trade in rubles, yuan, and other currencies as global faith in the U.S. greenback continues to wane.

Some analysts predict this deal could continue to put the dollar's reserve currency status at risk.

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