“The US dollar is losing its status as the world's reserve currency due to tariff policies implemented during Donald Trump's presidency.”

“Diminution of the U.S. dollar's status seems unlikely in the near term. Near-term challenges to the U.S. dollar's dominance appear limited. As shown in Figure 2, the dollar comprised 60 percent of globally disclosed official foreign reserves in 2021. This share has declined from 71 percent of reserves in 2000, but still far surpassed all other currencies.”

“Remarkably, there is very little indication that reserve managers are exiting the dollar, maybe for lack of obvious alternatives. The remarkable conclusion from these charts is that—while there is a longer-term decline in allocations to the U.S. dollar, it does not look like—based on the available data—that there is a decline since the start of President Trump’s second term. This suggests that the hurdle to loss of reserve currency status is very high, maybe for lack of any viable alternative to the dollar.”

“The USD is the dominant reserve currency, with dollar-denominated securities composing approximately 57% of global foreign exchange reserves as of the third quarter of 2025. The USD has been the dominant reserve currency since 1945, with dollar-denominated securities, mostly U.S. Treasuries and investment-grade corporate bonds, making up approximately 57% of global foreign exchange reserves.”

“The dollar's role as the primary global reserve currency remains secure in the near and medium term. The dollar continues to dominate foreign reserve holdings worldwide at 58 percent. The US dollar has served as the world’s leading reserve currency since World War II.”

“The latest IMF COFER release, now covering 100% of global FX reserves in 3Q25, shows a USD share of 56.9%, which is slightly higher than the FX-adjusted YE24 level. The share of the USD in the OTC FX was reported at 86.8% by mid-2025, which is also an FX-adjusted recovery compared to 2024. The increase in USD share in other metrics is not consistent with the claim that last year’s dollar weakness reflected a fundamental loss in confidence in the dollar.”

“Commentators also point to the dollar’s declining share of global reserves, from 71 percent in 1999 to around 56.3 percent at the end of 2025. It should be noted, however, that exchange-rate movements affect these numbers, since official holdings of other currencies are expressed in dollars. According to the International Monetary Fund, once adjusted for exchange-rate effects, the dollar’s share changed little during the second quarter of 2025, standing at 57.79 percent at the end of the first quarter.”

“The U.S. dollar was the most common currency in foreign exchange reserves in 2023, comprising more than three times the amount of the euro in global reserves that year. The share of the U.S. dollar has lost since to the Japanese yen and euro, as well as other currencies.”

“IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data shows a gradual long-term decline in USD share from ~70% in 2000 to ~58% in 2024-2025, but no acceleration due to specific tariff policies; diversification is to minor currencies, not a rival major currency.”

“Investors have long feared the US dollar will lose its status as the world's foremost currency—sometimes referred to as “de-dollarization. Since the late 1950s, global central bank reserve assets denominated in US dollars have made up the largest proportion of foreign reserves. According to the International Monetary Fund (IMF), global foreign asset stockpiles totaled nearly $11.5 trillion at the end of 2023.”