US Dollar Global Reserve Share Increases Amid Valuation Shifts

According to the IMF's Currency Composition of Official Foreign Exchange Reserves report, the US dollar's portion of global reserves grew from 56.42% in the final quarter of 2025 to 57.13% in the first quarter of 2026. Total global foreign exchange reserves experienced a slight decline, falling to $13.10 trillion from $13.15 trillion in the previous quarter.

The IMF indicated that the increase in the dollar's share is largely a valuation artifact resulting from the currency's appreciation against others, rather than a strategic change in central bank holdings. This shift occurs against a broader historical backdrop, as the dollar's share of global reserves has fallen from approximately 71% around 1999 and 2000 to near 57% today.

A survey of 90 central banks and sovereign institutions conducted by OMFIF in June 2026 suggests a potential for further structural decline. A majority of respondents indicated plans to reduce their dollar allocations over the next decade, identifying rising political risks as the primary motivation.

Central banks have increasingly turned to gold, which surpassed US Treasuries as the leading reserve asset by 2025. Gold is favored for its lack of counterparty risk, immunity to sanctions, and independence from the fiscal credibility of any specific government. Meanwhile, the euro maintains its position as the second-largest reserve currency, while the renminbi continues to represent a small portion of the global total. Official reserve figures do not include cryptocurrencies or digital tokens.