Throughout the last year, the rising prominence of the BRICS alliance has coincided with the continued decline of the US Dollar. Moreover, in a recent report, Scotiabank has said that the greenback will continue its ongoing fall in 2024 amid a plethora of geopolitical developments and macroeconomic headwinds.
To this point, the US dollar has had a strong start to the year. However, Scotiabank among many has predicted that such a start is not sustainable. Subsequently, the bank stated its expectation that the greenback would continue a decline, especially against other core major currencies globally.
Scotiabank Predicts Decline for US Dollar in 2024 Amid BRICS and Inflation
Throughout last year, the BRICS alliance experienced noticeable growth. The economic alliance had seen the presence of Western Sanctions catapult its relevance on a global scale. Specifically, in its overall de-dollarization plans that would come to fruition over the last several months.
That development has led to a continued decline in the greenback that many expect to continue. Specifically, despite BRICS initiatives, Scotiabank has predicted the US Dollar to fall in 2024. Especially concerning its relationship to the other core major currencies around the globe.
“Regardless of the USD’s strong start to the year, we still expect it to soften over the balance of 2024 versus the core majors,” the bank stated. “Some (modest) narrowing growth and interest rate differentials will combine as a headwind for the USD in 2024.”
The forecast arrives amid the US dollar’s recovery from a sell-off that took place towards the end of 2023. Moreover, the BRICS alliance has shared a plethora of statistics that showcase its deteriorating usage rate of the greenback.
Additionally, various central banks across the globe have opted to move away from the US dollar as their main accumulated asset. The question is, how will this continue this year? And what could it mean for the US dollar place after 2024?