The dollar is losing ground as a reserve currency, but remains dominant

Slightly smaller share of dollars in reserves

In 2016, around 57% of global foreign exchange reserves were still held in US dollars. This figure had dropped to around 40% by the end of2025. This means the dollar is losing some ground. Nevertheless, it remains by far the most important reserve currency.

The euro share is much smaller, but has remained fairly stable over time. At the end of 2025, the euro accounted for around 14% of global foreign exchange reserves. Other currencies play a less significant role, but are gaining slightly in popularity.

A strong dollar is important for the United States

The United States benefits from the dollar’s dominant position. Much international trade is conducted in dollars, including the oil trade. Consequently, it is easier to maintain the value of, and confidence in, the dollar.

The United States holds relatively few foreign exchange reserves, and the existing reserves consist mainly of euro and Japanese yen. The share of the euro in US reserves rose from 59% in 2016 to 69% in 2025.

Gold is the second most important reserve

In addition to currency, countries are increasingly opting for gold. Since 2009, global gold reserves have risen by around 20%: from 30,500 tonnes to over 36,500 tonnes in 2025. China in particular, and – until 2020 – Russia, have significantly increased their gold reserves.

Since early 2024, gold has even become the second most important reserve asset in the world. At the end of 2025, gold accounted for around 25% of total reserves, partly due to the sharp rise in the price of this asset.

Gold is seen as a safe haven in uncertain times, and countries use it as a safeguard against major shocks to the financial system.

The rise of smaller currencies

It is noteworthy that smaller currencies are also gaining ground. The emergence of more regional payment systems may have contributed to this. Their combined share rose to around 4% in 2025, and includes currencies such as the Australian dollar, the Canadian dollar and the Swiss franc.

The share of the Chinese renminbi in international reserves remains relatively small. Although the IMF included the currency in its basket of major currencies back in 2016, countries are not yet opting for it en masse in their reserves.

More broadly diversified reserves

The figures show that countries are diversifying their reserves somewhat more broadly, not only across different currencies, but also into other assets such as gold. Although the dollar remains dominant, the world does seem to be becoming slightly less dependent on a single currency.

This new item is based on an article in ESB by Erik Bieleveldt, Mirjam Kroese and Hugo Smid (De Nederlandsche Bank)