Euroclear CEO: Global Investors Slowly Diversifying Away From The Dollar

Jenny Johnson, President and CEO of Franklin Templeton, discusses the changing dynamics of global finance, stating there is a 'gradual erosion of the dollar' rather than a sudden shift. Johnson notes that financial institutions are diversifying portfolios by not automatically replacing redeemed dollar securities with new ones. A key observation is the change in Asian investor behaviour; previously an 'anecdote', Europe's capital markets are now back on their agenda. Furthermore, there is a trend of increasing investment flows within APAC countries, with investors choosing regional markets over the traditional US-first approach. This diversification extends to financial services, with a move to include more European custodians and investment managers, signalling a broader strategy of hedging and diversification in portfolio allocation.