Franklin CIO: Alternative Assets to the Dollar Will Take Decades to Emerge

Odaily News The dominance of the US dollar has long been a topic of focus, but Franklin Templeton believes the dollar will remain the currency of choice. Sonal Desai, Chief Investment Officer of the firm's Fixed Income division, wrote in a report that the dollar's status is supported by three main pillars: the size of the world's largest economy, the depth of its markets, and its institutional credibility.

Sonal Desai pointed out that there is currently no reliable alternative asset, and it would take decades to build the institutional infrastructure needed to support such a currency. The debate over dollar dominance has intensified as former President Trump's unpredictable trade, geopolitical, and fiscal policies have diminished the appeal of US assets. Some analysts believe the euro and gold could become preferred reserve assets. (Jin10)