US Dollar Share of Global Central Bank Reserves Falls to Lowest Level Since 1994
By
stevenjgarner
5mo ago· 6 min readenInsight
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Summary
The US dollar's share of global foreign exchange reserves held by central banks has dropped to 56.9% in Q3, the lowest level since 1994, according to IMF data. This decline reflects a long-term trend of central banks diversifying their holdings into non-traditional reserve currencies. The USD share has fallen from 58.5% in Q1 and 57.1% in Q2, continuing a gradual erosion of the dollar's dominance that has been underway for decades.
Key quotes
· 3 pulledThe share of USD-denominated assets held by other central banks dropped to 56.9% of total foreign exchange reserves in Q3, the lowest since 1994, from 57.1% in Q2 and 58.5% in Q1, according to the IMF's new data on Currency Composition of Official Foreign Exchange Reserves.
Central Banks diversify their holdings into dozens of smaller 'non-traditional reserve currencies.'
USD-denominated foreign exchange reserves include US Treasury securities, US mortgage-backed securities (MBS), US agency securities, US corporate bonds, and other USD-denominated assets
The share of USD-denominated assets held by other central banks dropped to 56.9% of total foreign exchange reserves in Q3, the lowest since 1994, from 57.1% in Q2 and 58.5% in Q1, according to the IMF’s new data on Currency Composition of Official Foreign
