More central banks now plan to reduce their dollar reserves over the next decade than to increase them, marking the first time this sentiment has shifted since tracking began, according to a survey by the London-based Official Monetary and Financial Institutions Forum (OMFIF).
The survey, published Tuesday, was conducted between March and May and covered 74 central banks worldwide. Since OMFIF began collecting data on central bank investment plans in 2023, this is the first time the share of banks planning to reduce dollar holdings has exceeded those planning to increase them.
The findings come amid significant global energy market instability caused by the war in the Middle East and growing uncertainty over US foreign policy as President Donald Trump explores new tariff measures.
The trend signals continued de-dollarization — a reduction in dependence on the US dollar in international trade and financial transactions — which could put pressure on both the currency’s demand and its value.
According to JP Morgan Chase, the dollar’s share of central bank foreign exchange reserves fell to its lowest level in two decades last year.
The OMFIF report said geopolitical factors, rather than US domestic politics, have been the primary driver discouraging dollar investment this year. The United States’ role in creating risks for the global system was also cited as a major factor.
The dollar still dominates central bank reserve portfolios, accounting for approximately 58 percent of total allocations over the past five years, and this is expected to continue in the near term.
However, central banks are gradually shifting toward the euro and China’s renminbi. Nearly all surveyed banks said the renminbi is useful for reserve diversification. Two-thirds said the euro has become more attractive for international trade, up from 43 percent last year to approximately 67 percent. Twenty-nine percent of central banks want to increase their euro reserves in the long term, up from 22 percent.
Karsten Stroborn, head of markets at the Deutsche Bundesbank, said in the report that euro-denominated international debt reached a record high in 2025 and that the euro is now the primary currency for green bonds.
Alternative currencies including the Singapore dollar, Australian dollar, and Canadian dollar are also gaining attention as reserve diversification tools, consistent with the broader trend of central banks increasing their gold reserves to reduce dollar dependence.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report