Dollar Collapse Talks 'Nonsense,' Says Analyst: 'Designed To Panic People Into Buying What Doomsters Are Trying To Sell'

De-dollarization talks have gained ground recently, with the Chinese yuan and a proposed new BRICS currency among those touted as an alternative.

An economist, however, argued the case for the dollar retaining its global dominance.

Dollar Is Most Secure: The position of the dollar as the global reserve currency is secure as long as the U.S. remains the largest open trading economy and as long as there is a great inconvenience in switching, said Brad MacMillan, chief investment officer for Commonwealth Financial Network.

The economist stated that even China is bound to hold and take U.S. dollars. China sells its goods to the U.S., receiving payment in dollars, and subsequently invests them in dollars. He further explained that investing in U.S. Treasury securities is the only feasible option available to the country.

No Alternative: There is no real alternative for the dollar, MacMillan said. The three things that make the dollar special are the sheer size of the U.S. economy, the freely convertible nature of the dollar, and the relative political and economic stability of the U.S., he added.

The only other currencies that come closest to the dollar are the yuan and the euro but the yuan's exchange rate is not market-determined, making it very risky from a political perspective, the economist said. In terms of political stability, the U.S. has an edge over Europe, he added.

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Empty Talk: A lot of talk about the dollar's collapse is "nonsense," designed to panic people into buying something the doomsters are trying to sell, often gold, McMillan said.

The dollar is now trading at just about the same level against other currencies as it has for the past several decades, the economists noted.

"As far as the markets are concerned, the dollar is still where it has always been. If we consider the markets as a warning system, they are still flashing green," he said.

The Invesco DB US Dollar Index Bullish Fund UUP ended Tuesday’s session down 0.36% at $27.80, according to Benzinga Pro data.

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