The dollar’s share of official global foreign reserves has fallen from 64% to 56% over nearly a decade, but New York Fed research finds little evidence of a broad, systematic retreat from dollar assets. The decline was concentrated among a small number of large reserve managers: two central banks drove much of the change from 2015 to 2019, while Mexico and Morocco became important contributors from 2019 to 2023. Across the two periods, countries increasing and reducing dollar assets were broadly balanced. The research says most reserve adjustments continue to reflect liquidity needs, exchange-rate management and protection against funding shocks. IMF data showing the dollar’s reserve share reached a low in January not seen since 1995 was also heavily influenced by the dollar’s weaker exchange rate, which passively reduced the value of dollar reserves, rather than by large-scale selling. Gold has benefited more directly from diversification, while the dollar remains dominant in trade invoicing, cross-border lending and foreign-exchange trading.