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.
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