US dollar share in global reserves hits lowest level in 20 years

The share of the US dollar in global reserves has declined to its lowest level in 20 years, now accounting for around 40%, according to the analytical center The Kobeissi Letter.

“The US dollar now makes up roughly 40% of global currency reserves, the lowest level in at least two decades. Over the past ten years, its share has fallen by 18 percentage points. During the same period, the share of gold has risen by 12 percentage points, reaching 28%, the highest level since the early 1990s. Gold now accounts for a larger share of global reserves than the euro, yen, and pound sterling combined,” the analysts said.

According to The Kobeissi Letter, this shift is occurring as central banks diversify their assets, moving away from the US dollar while rapidly accumulating gold in their reserves. As a result, gold prices rose 65% in 2025, marking the largest annual increase since 1979, while the US dollar index fell 9.4%, posting its worst annual performance in eight years.