Dollar’s Reserve Dominance Erodes Amid Currency Valuation Shifts
The US dollar's share of global reserves declined to 56.32% in Q2 2026, down from 57.79% in March, according to IMF data. Exchange rate movements—not central bank actions—accounted for 92% of the apparent drop. A weakening dollar (DXY index down 10% YTD) artificially inflated non-dollar reserve values.
The euro gained ground, rising from 20.00% to 21.13% of reserves, while cryptocurrencies like BTC and ETH continue gaining traction as alternative reserve assets. Market volatility underscores growing institutional interest in digital assets as hedges against fiat depreciation.