Morgan Stanley Explains Why the US Dollar Cannot Be Dethroned

Is the US dollar's reign as the world's reserve currency coming to an end? Despite mounting debt levels in the U.S. and an uptick in global geopolitical risks sparking some debates, the answer, according to Morgan Stanley, is a resounding no. Morgan Stanley's recent report indicates that the U.S. dollar's status as the dominant global reserve currency is likely to persist. Despite discussions about alternatives, the finance giant reported on Thursday that the greenback is secure in its position.

Why the Dollar Remains King: Morgan Stanley's Perspective

Financial giant Morgan Stanley has come up with its own set of opinions, a viewpoint that shares how the US dollar’s supremacy is unmatched. Per Morgan Stanley, The U.S. dollar's dominant reserve currency status is likely to endure, partly because even the most talked about alternative – the Chinese yuan – falls short as a credible competitor. According to a Business Insider report, Morgan Stanley strategists are of the opinion that there is no competition when it comes to US dollar being the world's dominant force.

The Yuan and Other Rivals: Lacking What the Dollar Possesses

Rivals like the Chinese yuan or the Japanese yen or even a shared BRICS currency could disrupt the dollar's stats, some commentators have warned, but there are key weaknesses that hold them back. The dollar’s status as the top currency of central banks and for international trade probably isn’t fading soon, according to Morgan Stanley. The investment bank pointed to specific factors that contribute to the dollar's continued dominance, suggesting that potential challengers are simply not equipped to unseat it.