🚨 THE DOLLAR’S SHARE OF GLOBAL RESERVES JUST HIT A 32-YEAR LOW The USD now makes up 56.9% of global FX reserves down from a ~72% peak. That’s a structural shift. But let’s stay precise. A falling share ≠ dollar collapse. It usually reflects: • Central bank diversification • Growth of alternative reserve assets (gold, euro, yuan) • Geopolitical hedging after sanctions risk • Portfolio rebalancing as global GDP weights shift Important nuance: 56.9% is still dominant. The dollar remains: – The primary trade settlement currency – The backbone of global debt markets – The most liquid reserve asset Reserve share declines tend to be slow, multi-decade trends not sudden regime flips. However, structurally: Gradual diversification reduces marginal demand for U.S. Treasuries over time. That can influence: • Long-term yield dynamics • Funding costs • Dollar strength cycles For Bitcoin and gold narratives, this feeds the “neutral reserve asset” thesis. But de-dollarization is evolutionary, not revolutionary. The dollar doesn’t lose dominance overnight. It erodes at the margins.