The share of the US dollar in global reserves has fallen to 40%, a new low in 25 years, accelerating the de-dollarization process.
According to Bloomberg Intelligence data, the share of the US dollar in global foreign exchange reserves has declined from 65% in 2001 to the current 40%, marking a new low in 25 years.
Behind this long-term trend is the collective choice of various countries' institutions to systematically reduce exposure to the US dollar, which also signifies a structural weakening of the dollar's status.
Analysts believe that although the US dollar still holds the dominant position as a reserve currency globally, its market share has shown a stepwise downward trajectory over nearly 25 years, indicating that central banks around the world have begun a systematic process of diversifying their reserve assets.
The root of this trend lies, on one hand, in changes in the geopolitical landscape, which have prompted central banks to reduce their reliance on a single currency system. On the other hand, the long-standing massive fiscal deficits and debt levels in the United States have also raised market concerns about the long-term value of the dollar.
Additionally, with the strengthening of emerging economies and the expanded use of other currencies such as the euro and the renminbi in regional trade and financial settlements, central banks have also gained more viable options.
In summary, the capital flows in the global financial landscape are showing a trend towards multipolarity, which not only poses challenges to the long-term demand for dollar assets but also opens up broader strategic opportunities for other reserve assets like the euro, renminbi, and even gold.
In the future, the competitive landscape for reserve currencies may no longer be a simple matter of 'who replaces whom,' but rather evolve into a complex symbiotic system characterized by multipolar coexistence, mutual checks, and complementary advantages.