Dollar Dominance Crumbles: Global Reserves Slip to 57%—Is Sub-50% Inevitable by 2035?
The greenback’s grip is slipping. USD’s share of global reserves just hit 57%—a slow-motion decline that’s got central banks sweating. Could this be the decade the dollar loses its majority?
De-dollarization isn’t conspiracy theory anymore—it’s spreadsheet reality. Between BRICS expansion and CBDC experiments, the financial establishment’s favorite security blanket is looking threadbare.
Wall Street’s response? Print more dollars, obviously. Because when your hammer loses its edge, the solution is definitely more hammering.
US Dollar Forex Reserves Are Declining: Should You Be Worried?
The US dollar is currently in a twist, facing major resistance as developing currencies continue to hammer the dollar. The USD’s weakening stance due to rapid de-dollarization has led the world to switch towards alternatives, favoring alternative assets like Gold and Bitcoin. This has led the US dollar to note a sharp decline in its global forex reserves, showcasing how the world’s trust in the dollar is deteriorating and eroding.
The dollar’s foreign reserves have now dipped to 51%, down 13% in the last 25 years. This depressing development is a new toll for the dollar, with the aggressive US tariff regimes adding more pressure.
The share of U.S. dollar reserves held in global FX reserves has dropped to 57.4%, the lowest it’s been in at least 25 years
Meanwhile, Gold has risen to its highest level over the same period. pic.twitter.com/Et92iCDWGG
Where Does the American Currency Stand 20 Years From Now?
As the world continues to dump the USD, with statistics showcasing a declining pattern, the dollar could shed another 13% in the next 20 years, with the currency’s foreign reserves standing at a meager 45% by the year 2040. If the rapid de-dollarization forces the market, then the worst-case scenario could lead the American currency’s FX reserves to stand at an all-time low of 39.3%.
