Dollar’s decline has been overstated, says NY Fed study
Fall in greenback’s share of FX reserves driven by concentrated drop among small number of states
The dollar’s role in international financial markets is largely intact, despite the aggregate fall in the currency’s share of official foreign exchange reserves, researchers from the Federal Reserve Bank of New York have argued.
In a blog post on September 2, Linda Goldberg, Oliver Hannaoui and Sneha Parthasarathy note the dollar’s share of official FX reserves fell from 64% in 2015 to 56% in 2025. However, they say this reflects the actions of a small number of large reserve holders, such as
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