Jenny Johnson: Why Countries Are Quietly Diversifying Away From The U.S. Dollar

Franklin Templeton CEO Jenny Johnson discusses whether the dominance of the U.S. dollar feels different in today’s geopolitical moment. She argues that while the dollar remains the world’s primary reserve currency due to trust, stability and open capital flows, there are signs of gradual erosion. Johnson points to the freezing of Russia’s dollar assets after the Ukraine invasion as a turning point, prompting several central banks to consider diversifying their reserves. She highlights how recent tariffs, questions over the reliability of U.S. policy and alternative payment arrangements — such as India buying Russian oil in rupees and growing yuan-denominated trade between China and Russia — are slowly chipping away at the edges of the dollar’s supremacy.