Dollar's share of global reserves falls to lowest level in 28 years, driving de-dollarization trend
The dollar's share of global reserves has fallen to the lowest level in 28 years, according to the International Monetary Fund.
The freezing of Russia's foreign currency holdings has accelerated the trend towards de-dollarization, with countries increasingly diversifying their reserves away from the greenback.
The dollar's share of central banks' foreign reserves is now nearly down to the level last seen in 1995.
The long-standing status of the dollar as the world's dominant currency has been eroded in recent years due to concerns over soaring US debt and widely implemented sanctions.
The shift towards diversification was more pronounced when adjusted for exchange rates, and is reportedly being driven by countries such as Saudi Arabia, China, India, and Türkiye.
The yuan's share of global over-the-counter forex transactions has increased from nearly zero 15 years ago to 7%, and the dollar's use in the global system is expected to decline.