World Bank: U.S. economic power may fade

WASHINGTON, Sept. 28 (UPI) -- The U.S. dollar could lose its position as "the world's predominant reserve currency," the president of the World Bank said Monday.

In a speech at the Johns Hopkins University School for Advanced International Studies in Washington, Robert Zoellick said the euro and the Chinese renminbi, or yuan, are gaining favor and could challenge the dollar, The New York Times reported.

"The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency," Zoellick said. "Looking forward, there will increasingly be other options to the dollar."

Zoellick -- who formerly served as U.S. trade representative and as deputy secretary of state during the administration of President George W. Bush -- said the euro is already a "respectable alternative" for international trade financing and there is "every reason to believe that the euro's acceptability could grow."

Zoellick said the dollar will encounter growing competition from the yuan during the next 10 or 20 years.

He said the United States is losing its pre-eminence and -- along with other wealthy nations -- faces a loss of influence in the international economy, the Times said.