Morgan Stanley: The challenge of gold to the US dollar hegemony "seems endless"

Morgan Stanley stated that the role of the US dollar in the global system is gradually weakening, but due to limited credible alternative currencies, gold has become the biggest challenger to the dollar in an increasingly multipolar world. According to Morgan Stanley's research, the international influence of the dollar has declined in several key indicators, including its decreasing share in foreign exchange reserves held by central banks and its reduced use in corporate and emerging market sovereign issuances. However, the dollar still holds the largest share in global reserves, indicating that there is currently no significant challenger. However, the situation changes when gold is taken into consideration. The proportion of gold in central bank holdings has increased from about 14% to 25-28%, with this upward trend showing no signs of slowing down. Risk premiums and hedging behavior will continue to put pressure on the dollar while supporting gold demand. Additionally, policy factors are currently playing 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 will ultimately go.