The amount of U.S. dollars held as global reserve currency dropped in the final quarter of 2024, according to data released by the International Monetary Fund (IMF) on Monday. However, the percentage of reserves held in actual U.S. dollars saw a slight increase during this period.
The IMF’s Currency Composition of Official Foreign Exchange Reserves (COFER) data indicated that other major currencies, including the euro, pound sterling, yuan, yen, Swiss franc, and Australian and Canadian dollars, experienced a decline in dollar-equivalent amounts. Notably, only the Canadian dollar saw a modest uptick in its share of global reserves.
By the end of 2024, global foreign exchange reserves had fallen to $12.36 trillion, down from $12.75 trillion in the previous quarter. Reserves identified by individual currencies also saw a drop, from $11.84 trillion to $11.47 trillion.
The rise of the U.S. dollar, which appreciated 7.7% in the final quarter of 2024 against a basket of global currencies, contributed to this decrease. As a result, the dollar value of reserves held in other currencies fell. However, the dollar index has experienced a nearly 4% decline in the first quarter of 2025.
Brad Bechtel, global head of FX at Jefferies in New York, remarked, “I don’t expect drastic changes from one COFER report to the other because, why would you? The U.S. remains the most liquid and deep market in the world.” Bechtel added that the only significant change in the reserve landscape has been the growing allocation to gold, particularly in countries like China, India, and Russia, although COFER data does not fully reflect this trend.
The percentage of reserves held in U.S. dollars rose slightly, to 57.8% of the total disaggregated reserves, compared to 57.3% in the previous quarter. Meanwhile, holdings in the Canadian dollar increased marginally to 2.77% from 2.74%. The share of reserves held in the euro dropped to 19.8% from 20.0%, and sterling holdings fell to 4.73% from 4.98%. The yuan remained unchanged at 2.18%, and the Japanese yen saw little fluctuation, falling slightly to 5.82% from 5.83%.
As global markets continue to adjust, the trend of shifting reserve allocations underscores the evolving dynamics in global finance.
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