IMF reports dollar share of world currency reserves at 29-year low

(MENAFN) The US dollar's share in global foreign exchange reserves has fallen to its lowest level in nearly three decades, according to the International Monetary Fund (IMF). The greenback now accounts for 57.4% of official reserves, marking a 0.85% decline from July to September 2024, its lowest point since 1995.

The IMF highlighted this trend, noting that countries are increasingly diversifying their reserves. While the dollar's dominance is waning, nontraditional currencies, such as the euro, are gaining traction. In the third quarter, the euro's share rose to 20.02%, and the Japanese yen saw a consistent increase, reaching 5.82%. The Chinese yuan's share also saw a slight increase, rising to 2.17% in the same period.

Despite this decline, the dollar remains the leading reserve currency, with the euro in second place. The dollar's position has been challenged by concerns over the US's rising debt and its use of sanctions. The sanctions imposed on Russia, especially since the Ukraine conflict escalated, have raised doubts about the safety of dollar reserves, prompting other nations to seek alternatives. Russia and its BRICS partners are now using national currencies for 65% of their trade settlements, signaling a broader shift away from the dollar.

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