Gate News message, April 16 — Franklin Templeton’s fixed income chief investment officer Sonar Desai has argued that the U.S. dollar will remain the world’s preferred currency, despite growing scrutiny of its dominant position. In a report, Desai outlined three pillars supporting the dollar’s status: the size of the world’s largest economy, market depth, and institutional credibility.
Desai stated that no credible alternative currently exists, and building the institutional infrastructure needed to support an alternative currency would require decades. While some analysts suggest the euro, gold, and digital assets could become strong competitors for the role of preferred reserve asset, Desai countered that the dollar’s true competitor has yet to emerge. She noted that the eurozone cannot issue a unified safe asset of sufficient scale.
According to data from the Bank for International Settlements’ 2025 triennial survey, the dollar accounts for 89% of over-the-counter foreign exchange trading. Desai characterized the dollar’s current weakness as cyclical rather than structural. On a real trade-weighted basis, the dollar remains well above its lows from the mid-1990s and late 2000s, a level consistent with its status as the global reserve currency.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Fed's Williams Signals Pause on Rate Changes, Says Monetary Policy in 'Good Position'
Federal Reserve official John Williams affirmed a steady monetary policy outlook, projecting 2% to 2.5% economic growth and stable unemployment around 4.25% to 4.5%. Inflation is expected to decrease from 2.75% to 3% in 2026 to 2% in 2027.
GateNews40m ago
US Ends Oil Waivers for Iran and Russia, Threatens Secondary Sanctions on Buyers
The Trump administration will not renew sanctions waivers for Iranian and Russian oil, prompting threats of secondary sanctions against countries, particularly China, buying Iranian oil. This decision ends efforts to stabilize global oil prices amidst ongoing Middle East tensions.
GateNews2h ago
Fed’s Goolsbee warns rate cuts may be delayed until 2027 on Iran war oil shock
Austan Goolsbee warns that high oil prices from the Iran war may prevent the Federal Reserve from cutting interest rates until 2027, prolonging inflation above the 2% target and leading to a "higher for longer" interest rate scenario.
Cryptonews2h ago
Indonesian Rupiah Hits Record Low Against Singapore Dollar Amid Iran War Oil Shock
Indonesia's rupiah has hit a record low against the Singapore dollar due to rising oil prices and capital outflows from financial markets. Concerns about demand for Singaporean services and export flows to Indonesia are growing. The central bank's interventions aim to stabilize the currency.
GateNews4h ago
Eurozone March CPI Rises to 2.6% Year-on-Year, Beating Initial Forecast of 2.5%
Eurozone consumer price inflation rose to 2.6% in March, surpassing February's 1.9% and the initial estimate of 2.5%. Core CPI fell slightly to 2.3%, down from 2.4% in February.
GateNews4h ago
Global Stocks Hit Record High as US-Iran Ceasefire Hopes Surge; Dollar Faces 17-Year Longest Losing Streak
Rising hopes for a US-Iran ceasefire have spurred a global market rally, with stock indices hitting record highs and risk sentiment improving. As tensions ease, oil prices stabilize, the dollar weakens, and investor focus shifts to corporate earnings and growth amid declining inflation concerns.
GateNews6h ago
