Morgan Stanley: No End in Sight for Gold’s Challenge to US Dollar Hegemony

According to Odaily, JPMorgan stated that the role of the US dollar in the global system is continuously and gradually being weakened. However, due to the limited availability of credible alternative currencies, gold has become the biggest challenger to the dollar in an increasingly multipolar world. According to JPMorgan's research, the international influence of the dollar has declined across several indicators, including a decrease in its share of foreign exchange reserves held by central banks and a reduction in its use in corporate and emerging market sovereign issuances. Nevertheless, the dollar still holds the largest share of global reserves, indicating that there is currently no substantial challenger. However, the situation changes once gold is taken into account. The proportion of gold in assets held by central banks has risen from about 14% to 25%–28%, and this upward trend "shows no signs of slowing down." Risk premiums and hedging behaviors will continue to put pressure on the dollar while supporting demand for gold. In addition, policy factors currently play a "neutral to slightly accelerating" role in driving "de-dollarization," and the short-term evolution of these policies will determine how far the de-dollarization trend ultimately goes. (Golden Ten Data)