US Dollar Share of Global Reserves Falls Below 45%

According to Bloomberg, the dollar’s share of global reserve holdings has dropped by more than 15 percentage points since 2020, reflecting a gradual shift in central bank allocations.

Summary

Bloomberg reports that the US dollar’s share of global reserves has slipped below 45%, down more than 15 percentage points since 2020. Global reserves typically refer to foreign currency assets held by central banks and other monetary authorities to support exchange rates and financial stability, so changes in this share are often watched as a signal of broader portfolio diversification.

Terms & Concepts
  • Global reserves: Foreign currency assets held by central banks to manage liquidity, exchange rates, and financial stability.
  • Reserve currency: A currency widely held by central banks and institutions for international trade and reserve holdings.
  • Central bank: A national monetary authority that manages currency, reserves, and interest-rate policy.