IMF Data Shows Decline in Dollar Dominance
Central banks and governments are increasing their initiatives to reduce reliance on the US dollar in their foreign exchange reserves, according to data from the IMF. Read Full Article at RT.com
TroibNews 
Countries have intensified their efforts to reduce reliance on the US dollar, as recent data reveals.
The International Monetary Fund (IMF) recently published statistics indicating that the proportion of the US dollar in global foreign exchange reserves has fallen to its lowest point in nearly three decades.
According to the Washington-based institution, the dollar's share in official reserves decreased by 0.85% from July to September of this year, now accounting for 57.4%—the lowest level since 1995. The IMF does not offer historical data for previous years.
In June, the IMF highlighted this trend in an official blog, noting that the dollar's decline is part of a broader diversification strategy being adopted by countries worldwide. The data suggests that while the dollar's share has consistently diminished over the past three quarters, the share of “nontraditional” currencies is on the rise.
Moreover, the dollar has been losing its footing against the euro. In the third quarter, the euro’s share increased to 20.02%, up from 19.75% in the second quarter. Japanese yen investments have also surged, recording a share of 5.82% in Q3 after six consecutive quarters of growth.
Additionally, the data revealed a halt in the decline of the Chinese yuan's share in global forex holdings, which had been decreasing for nine quarters. In Q3, the yuan's share rose to 2.17%.
Despite this downward trend, the dollar remains the dominant reserve currency, according to IMF statistics, with the euro as a distant second.
The long-standing supremacy of the dollar has come under threat in recent years due to mounting concerns about US debt levels and sanctions imposed by Washington on its adversaries, including Russia.
Following the escalation of the Ukraine conflict in February 2022, the US implemented a series of anti-Russia sanctions, cutting off the country's central bank from dollar transactions. Additional measures included banning the export of dollar banknotes to Russia and leading efforts to freeze Russian assets abroad. Foreign Affairs magazine noted in June that these sanctions had “undoubtedly left other central banks wondering whether their own dollar-denominated rainy-day funds would be locked up should their governments run afoul of Washington.”
Meanwhile, Russia has been compelled to pursue de-dollarization as a result of these sanctions. Recent data from September indicates that Moscow and its BRICS partners are now conducting 65% of their mutual trade settlements in national currencies. In a speech at the BRICS summit in Kazan in October, Russian President Vladimir Putin cautioned that Washington's use of the dollar as a weapon through sanctions and restricting access to the Western financial system represents a “big mistake” and is driving countries “to look for other alternatives, which is what is happening.”
Ian Smith for TROIB News
The International Monetary Fund (IMF) recently published statistics indicating that the proportion of the US dollar in global foreign exchange reserves has fallen to its lowest point in nearly three decades.
According to the Washington-based institution, the dollar's share in official reserves decreased by 0.85% from July to September of this year, now accounting for 57.4%—the lowest level since 1995. The IMF does not offer historical data for previous years.
In June, the IMF highlighted this trend in an official blog, noting that the dollar's decline is part of a broader diversification strategy being adopted by countries worldwide. The data suggests that while the dollar's share has consistently diminished over the past three quarters, the share of “nontraditional” currencies is on the rise.
Moreover, the dollar has been losing its footing against the euro. In the third quarter, the euro’s share increased to 20.02%, up from 19.75% in the second quarter. Japanese yen investments have also surged, recording a share of 5.82% in Q3 after six consecutive quarters of growth.
Additionally, the data revealed a halt in the decline of the Chinese yuan's share in global forex holdings, which had been decreasing for nine quarters. In Q3, the yuan's share rose to 2.17%.
Despite this downward trend, the dollar remains the dominant reserve currency, according to IMF statistics, with the euro as a distant second.
The long-standing supremacy of the dollar has come under threat in recent years due to mounting concerns about US debt levels and sanctions imposed by Washington on its adversaries, including Russia.
Following the escalation of the Ukraine conflict in February 2022, the US implemented a series of anti-Russia sanctions, cutting off the country's central bank from dollar transactions. Additional measures included banning the export of dollar banknotes to Russia and leading efforts to freeze Russian assets abroad. Foreign Affairs magazine noted in June that these sanctions had “undoubtedly left other central banks wondering whether their own dollar-denominated rainy-day funds would be locked up should their governments run afoul of Washington.”
Meanwhile, Russia has been compelled to pursue de-dollarization as a result of these sanctions. Recent data from September indicates that Moscow and its BRICS partners are now conducting 65% of their mutual trade settlements in national currencies. In a speech at the BRICS summit in Kazan in October, Russian President Vladimir Putin cautioned that Washington's use of the dollar as a weapon through sanctions and restricting access to the Western financial system represents a “big mistake” and is driving countries “to look for other alternatives, which is what is happening.”
Ian Smith for TROIB News
