The U.S. Dollar suffered in 2025 as traders embraced “Sell America.” But the war in Iran boosted the global reserve currency —albeit temporarily — and has analysts debating: has the greenback turned a corner?
Deutsche Bank has ignited debate after one of its strategists predicted that the dominance of the U.S. dollar could be eroded if countries decide to price crude in alternative currencies.
The Iran war could be remembered as a key catalyst for “erosion in petrodollar dominance, and the beginnings of the petroyuan,” Deutsche FX managing director Mallika Sachdeva said in a note published March 24.
Franklin Templeton responded on April 14 with a note that called the analysis “remarkably simplistic,” writing that Sachdeva has misinterpreted the security-for-oil-pricing relationship with Saudi Arabia.
“Oil is not priced in US dollars simply because the United States has long acted as the world’s policeman,” wrote Sonal Desai, Franklin Templeton’s fixed income CIO.
