RT reported that the IMF said that in the third quarter of this year, the USD's share in global foreign exchange reserves fell by 0.85% to 57.4%. This is the lowest level in nearly three decades, reflecting the trend of diversifying currency reserves of countries around the world.
The IMF warned in June that the dollar’s decline comes amid increased efforts by countries to move away from the currency. Instead, “non-traditional” currencies and the euro are gaining ground. In the third quarter, the euro’s share rose to 20.02%, while the Japanese yen rose for the sixth consecutive quarter to 5.82%.
Notably, China's yuan share, after nine consecutive quarters of decline, has rebounded to 2.17% of total global foreign exchange reserves.
Despite its declining market share, the US dollar remains dominant in the foreign exchange reserve market, with the euro holding steady in second place.
The US dollar is under great pressure from the growing US public debt and the sanctions policy that Washington imposes on its opponents, especially Russia.
After the Ukraine conflict escalated in February 2022, the US banned the Russian central bank from conducting transactions in USD and also blocked cash USD from entering the country. The sanctions have caused many other central banks to worry that their USD reserves could be frozen if they fall into Washington's "crosshairs".
In addition, sanctions have also forced Russia to step up its “de-dollarization” strategy. According to September data, Russia and its partners in the BRICS economic bloc now use national currencies in 65% of bilateral trade transactions.
At the BRICS summit in Kazan in October, Russian President Vladimir Putin criticized the US use of the dollar as a tool of sanctions, warning that it was a “big mistake.” Putin stressed that it was pushing countries to look for alternatives, and that the trend would continue.
