Goldman Sachs Group Inc. warned Tuesday that the U.S. dollar is on the brink of losing its position of world's reserve currency as inflation concerns in the U.S. grows, according to Bloomberg.

As the U.S. Congress is busy issuing another round of fiscal stimulus to fight the economic downturn brought by the COVID-19 pandemic, and the Federal Reserve is aggressively easing monetary policy, Goldman Sachs said that currency "debasement fears" has been triggered, which could end the U.S. dollar's dominance in global foreign-exchange markets.

"Gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their fiat currencies and pushing real interest rates to all-time lows," wrote Goldman strategists.

The strategists added that there are now "real concerns around the longevity of the U.S. dollar as a reserve currency."

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