Euro and gold have difficulty shaking the foundation of the US dollar! Franklin D. Roosevelt: It will take several decades to establish a substitute for the US dollar.

The dominance of the US dollar has always been a focus of scrutiny, but Franklin Templeton believes that the dollar will remain the preferred currency. Sonal Desai, Chief Investment Officer of the fixed income department at the company, wrote in a report that the status of the dollar is supported by three pillars, namely the size of the world's largest economy, the depth of the market, and institutional credibility. She added that there is no credible alternative, and it would take decades to establish the institutional infrastructure needed to support such a currency. With US President Trump's fickle trade, geopolitical, and fiscal policies weakening the attractiveness of US assets, the debate over the dollar's hegemony is intensifying. Some analysts believe that the euro, gold, and digital assets could become strong competitors for preferred reserve assets. Desai wrote: "The Eurozone cannot issue a unified safe asset on a scale large enough. In my view, a true competitor to the dollar has yet to emerge." Desai pointed out that data from a three-year survey by the Bank for International Settlements in 2025 shows that the US dollar accounts for as much as 89% of off-exchange foreign exchange trading volume. Desai wrote that the current weakness of the dollar is cyclical, not structural. When calculated on a trade-weighted basis, the dollar is still far above its lows in the mid-1990s and the late 2000s, and to some extent, the weakness of the dollar is consistent with its global reserve currency status.