The decline in the dollar’s share of global foreign-exchange reserves may give the impression of a broad retreat from the US currency, but a new study from the Federal Reserve Bank of New York suggests the shift has been driven largely by a relatively small group of countries, Bloomberg reported.
Dollar holdings accounted for 56% of official foreign-exchange reserves last year, down from 64% a decade earlier. The decline has increasingly been viewed as evidence that central banks are diversifying away from the greenback. But the New York Fed researchers argue that aggregate figures can obscure what is happening beneath the surface.
