Dollar Dominance Erodes as De-dollarization Gains Ground

The US dollar’s reign as the world’s reserve currency is under threat as a global shift towards de-dollarization accelerates. Increasingly, investors and analysts view the stability of the United States’ financial system with skepticism. The IMF data reflects this trend; the dollar’s share in global foreign exchange reserves fell to 57.8% at year-end 2024, the lowest point since 1994. This decline highlights a long-term trend accelerated by trade tensions and growing concerns about US debt sustainability.