# [WARNING] USD share of global FX reserves hits lowest level this century

*Thursday, July 2, 2026 at 9:28 AM UTC — Hamer Intelligence Services Desk*

**Detected**: 2026-07-02T09:28:24.109Z (3h ago)
**Tags**: MARKET, financial, currency, reserves, gold, de-dollarization
**Sources**: OSINT
**Permalink**: https://hamerintel.com/data/alerts/12777.md
**Source**: https://hamerintel.com/summaries

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**Summary**: New data show the US dollar’s share of global FX reserves has fallen to its lowest point this century, highlighting an incremental shift toward diversification. This supports a structurally softer dollar over the medium term and may reinforce demand for gold and some non‑USD reserve currencies.

## Detail

Fresh reporting indicates that the US dollar’s share of disclosed global foreign exchange reserves has declined to the lowest level seen this century. While no precise percentage is cited in the alert, the direction is consistent with recent IMF COFER data showing gradual diversification into the euro, yen, pound, Canadian and Australian dollars, as well as emerging‑market currencies and, crucially, gold.

The move is structural rather than cyclical: reserve managers, particularly in countries exposed to US sanctions risk or geopolitical tensions, have been slowly reducing the proportion of USD‑denominated assets in favor of a broader basket. This does not imply imminent displacement of the dollar as the dominant reserve currency, but it does suggest a continued erosion from prior peaks above 70% share to the mid‑50s or lower over time.

Market impacts are threefold. First, a lower USD reserve share tends to be associated with a weaker or more volatile dollar over the medium term, as incremental reserve accumulation flows are distributed more widely. That can support commodity prices in USD terms, especially gold, as central banks have been large net buyers of bullion as part of diversification. Second, select non‑USD majors (EUR, JPY, CHF, GBP) and some EM currencies with credible policy frameworks may benefit from steady official sector demand. Third, US Treasuries could see a marginally reduced structural bid from reserve managers, with implications for term premia, though this effect is gradual and easily overshadowed by cyclical Fed policy shifts.

Historically, previous milestones in the USD share decline (e.g., early 2000s euro adoption, post‑GFC diversification) coincided with multi‑year bull markets in gold and periodic phases of USD weakness, though causality is not one‑to‑one. The current development is likely to have limited immediate, single‑day price impact but meaningful structural implications over 3–10 years, reinforcing themes of de‑dollarization at the margin and sustained central‑bank demand for gold as a neutral reserve asset.

**AFFECTED ASSETS:** DXY, EUR/USD, USD/JPY, Gold, US Treasuries, EM FX reserve currencies basket