Dollar dominance faces fresh scrutiny as analysts clash over de-dollarization. Deutsche Bank predicts potential erosion of petrodollar supremacy if countries price oil in alternative currencies like the petroyuan, citing the Iran conflict as a catalyst. Franklin Templeton counters that the dollar's strength stems from access to deep capital markets and institutional protections, not military power alone. The debate reflects broader concerns about U.S. currency hegemony, which has declined from over 70% of global reserves in 1999 to just above 50% today. Despite challenges including the dollar's worst performance in 50 years during early 2025, analysts struggle to identify a viable alternative for global trade dominance.
