4% of institutions plan to cut U.S. dollar exposure, OMFIF survey shows
The reading, based on a survey of 74 central banks and public institutions, is the first sign in three years of planned reductions in dollar portfolio allocations.
Fact Check
The OMFIF Global Public Investor 2026 report (primary source) and Reuters both confirm the survey and its central finding that, for the first time, more central banks plan to reduce dollar holdings than increase them. The specific '4% plan to cut USD exposure' figure and 'first sign in three years' framing come from The Kobeissi Letter post, which is the direct origin of the claim wording and cites '74 central banks and public institutions.' The full survey covered 90 institutions (74 central banks plus 16 public funds), so the claim's institution count is accurate for the central-bank subset. The 4% net-reduction figure over the short horizon is consistent with the reported reversal in dollar sentiment, though the primary OMFIF summary emphasizes the 10-year horizon. Overall the substance is well corroborated by authoritative sources.
Summary
A small share of global financial institutions expects to trim U.S. dollar exposure over the next 12 to 24 months, marking the first such reading in three years. The result comes from an OMFIF survey of 74 central banks and public institutions and suggests at least some reserve managers are reassessing dollar allocations as part of broader portfolio diversification. While the figure is limited at 4%, it is notable because official-sector reserve preferences are closely watched for signs of shifts in global currency demand.
Terms & Concepts
- U.S. dollar exposure: Portfolio holdings linked to the dollar.