Top US Bank Warns BRICS, Says the Dollar Cannot Be Replaced

Leading global investment bank Morgan Stanley came in favor of the US dollar against the ‘BRICS currency’ onslaught. The support comes after the BRICS alliance openly issued a challenge to uproot the US dollar as the world’s reserve currency. The bloc of nine countries is aiming to push local currencies ahead of the USD to settle cross-border transactions.

Also Read: BRICS Ditches US Dollar, Settles $4 Billion Trade in Local Currencies

Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. However, Morgan Stanley came in support of the US dollar stating that leading local currencies cannot replace the USD. The bank explained key reasons why the US dollar will remain supreme and continue ruling the global financial sector despite threats.

Also Read: Currency: What To Expect From the US Dollar This Week?

BRICS: Investment Bank Morgan Stanley Says ‘US Dollar is King’

Source: noticsdash.com

The US-based investment bank Morgan Stanley said that rival currencies like the Chinese yuan and Japanese yen don’t stand a chance to replace the dollar. The bank’s strategist James Lord said in a podcast that the US dollar is reliable even when the markets crash. Even during the times of a recession, the US dollar delivers returns, he said while discussing the threats from BRICS.

Also Read: BRICS: 2 New Countries Agree To Ditch US Dollar

“Which currency would you want to own when global stock markets start to fall? And the global economy tends to head into recession? You want to be positioned in US dollars because that has historically been the exchange rate reaction to those kinds of events,” he said. BRICS currencies stand no chance in the markets during financial turmoil and downturns, the Morgan Stanley strategist explained.

The local currencies of BRICS nations are struggling to beat the US dollar in 2024 despite threatening to uproot it. “Bottom line, King dollar doesn’t really have any challengers,” said Michael Zezas, the Head of US public policy research while discussing BRICS.

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