Temasek Holdings CEO Dinesh Rathakrishnan has underscored the enduring supremacy of the US dollar in global finance, highlighting its role in trade, reserves, and capital flows despite growing calls for currency diversification. The statement comes amid rising volatility in energy and defense markets.
- US dollar holds 58% of global foreign exchange reserves, according to IMF data
- Temasek’s portfolio has over 70% of international investments in US dollars
- ICE US Dollar Index rose 2.3% in February 2026
- Crude oil futures (CL=F) increased 6% in early March 2026
- Cboe Volatility Index (^VIX) reached 21.4 in early March 2026
- Major defense procurement contracts remain dollar-denominated
Temasek Holdings' CEO Dinesh Rathakrishnan has reiterated that the US dollar remains the cornerstone of the global financial system, a view rooted in its entrenched role across international transactions and central bank reserves. His remarks, delivered during a keynote at the Singapore Economic Forum, emphasized that no alternative currency has yet demonstrated the depth, liquidity, or stability required to supplant the dollar's position. According to the latest data from the IMF, the US dollar accounts for 58% of global foreign exchange reserves, with the euro at 20% and the Chinese yuan at 3%. These figures underscore the structural advantages that continue to favor the dollar, even as geopolitical tensions prompt some nations to explore bilateral trade settlements in local currencies. Temasek’s own portfolio, which manages over $360 billion in assets, reflects this preference, with more than 70% of its international investments denominated in US dollars. Market indicators show heightened sensitivity to dollar strength. The ICE US Dollar Index rose 2.3% in February 2026, while crude oil futures (CL=F) saw a 6% spike on renewed supply concerns, a trend often linked to dollar fluctuations. The Cboe Volatility Index (^VIX) also climbed to 21.4 in early March, signaling increased investor anxiety tied to currency and energy volatility. The defense sector, a key focus for Temasek’s strategic investments, continues to operate within a dollar-denominated framework, with major procurement contracts between the US and allied nations typically priced in USD. This dependency reinforces the currency’s relevance beyond finance into national security infrastructure. As global supply chains reconfigure and regional blocs deepen economic integration, the dollar's dominance may face long-term challenges—but for now, it remains unshaken.