Posted 1/5/2024, 2:02:55 PM
Morgan Stanley Downgrades Dollar Outlook as BRICS Alliance Challenges Global Dominance
- Morgan Stanley downgraded its outlook on the U.S. dollar from "Bullish" to "Neutral" due to declining Treasury yields and Federal Reserve interest rate cuts
- The downgrade comes as the BRICS alliance pushes to undermine the global dominance of the dollar
- BRICS is planning to launch a "joint currency" to challenge the primacy of the dollar in global trade and finance
- Iran, the newest BRICS member, has specifically called for a joint currency within BRICS to sideline the dollar
- A growing number of developing countries have begun using local currencies instead of the dollar for cross-border transactions, furthering BRICS' de-dollarization motives