US Dollar Share of Global Currency Reserves

Written by Zornitsa Stefanova

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Zornitsa Stefanova

Zornitsa Stefanova is a Financial Research and Platform Testing Analyst at BestBrokers.com, specialising in hands-on reviews of forex, cryptocurrency and stock trading platforms. She evaluates brokerage companies from a user-focused perspective, testing key areas such as account setup, trading conditions, platform usability, available markets and overall reliability.

, | Updated: July 21, 2026

Reserve currencies are held by central banks and other major financial institutions, thus facilitating investments, transactions, and monetary debts, as well as impacting their domestic exchange rate. A large portion of commodities is priced in the reserve currency, leading countries to hold this currency to pay for these items. A reserve currency lowers exchange rate risk, as the country does not need to exchange its currency for the reserve currency to accomplish the trade.

The US dollar has played a crucial role as the world’s reserve currency since World War II after the Bretton Woods agreement came into effect in December 1945. Its dominant share of foreign reserve holdings amounted to 57.79% in the first quarter of 2025, but the share dropped to 56.32% in Q2 and stayed below the 57% threshold throughout the rest of 2025, reflecting a gradual diversification of global reserves as international financial markets continue to broaden and evolve. As of Q1 2026, the claims in the US dollar experienced a partial rebound and now account for 57.13% ($7.487 trillion) of global reserves.

Meanwhile, the euro ranks second: In Q1 2025 it made up 19.11% of all foreign reserve holdings, whereas the first quarter of 2026 saw EUR claims reach 20.03% ($2.625 trillion).

Although the US dollar has lost some ground in recent decades to nontraditional currencies, it has retained its position as a leading reserve currency. Combined, the US dollar and euro account for nearly 77.16% of total foreign exchange reserves worldwide as of Q1 2026. Additionally, the dollar dominates in terms of foreign exchange transactions and export invoicing with shares of 89% and 54%, respectively.

With today’s report (updated July 2026), the team at BestBrokers aims to provide comprehensive statistical information on the US dollar’s share in global currency reserves. We mostly sourced information from the International Monetary Fund’s (IMF) data on the Currency Composition of Official Foreign Exchange Reserves (COFER) and the Atlantic Council’s GeoEconomics Center study, Dollar Dominance Monitor.

Short History of the US Dollar Becoming the World’s Reserve Currency

During the 19th century and the first half of the 20th century, the UK’s pound sterling served as the reserve currency for a large part of the world. The US emerged as a major economic power after World War II and has significantly impacted the global economy. With a 50% share of the world’s economic output at one point, it made sense for the US dollar to become the world’s currency reserve.

The Bretton Woods Agreement of 1944

On July 4, 1944, in Bretton Woods, New Hampshire, United States, the Bretton Woods Agreement was signed, with delegates from 44 countries agreeing to the US dollar officially becoming the world’s reserve currency. The International Monetary Fund, which is tasked with promoting international economic growth and trade, and what became the World Bank Group, were established.

Under the agreement, the dollar was pegged to gold, and most other currencies were pegged to the US dollar, which, due to its relative stability, enabled them to stabilize their currencies as well. At first, the world economy benefited from the stability of the dollar. However, as the dollar’s gold backing lessened, the value of currency reserves held by other countries declined.

The Smithsonian Agreement of 1971

This eventually led to the abandonment of the gold standard under the Smithsonian Agreement of 1971 between G-10 member states. The same year, President Nixon decoupled the dollar from the gold standard, which resulted in floating exchange rates. There have been many predictions pointing to the dollar completely losing its dominance, but all have proven wrong so far.

Despite the termination of the convertibility of the dollar to gold, its recent depreciation, and market volatility, financial experts largely agree that the dollar’s strength and stability will sustain its role as the world’s primary reserve currency, with little likelihood of a significant downturn in the near future.

The USD Maintains Its Global Foothold Despite Recent Challenges

One recent example comes from the World Economic Forum Annual Meeting in January 2026, where leading economists and central bankers observed that some regions are looking to diversify away from the dollar. However, they also pointed out that there are countries seeking economic stability via redollarization.

In general, there is little prospect of a major challenge to the greenback’s supremacy. The dollar remains strong due to the relative economic growth and monetary policy differentials favoring the US that underpin its stability and attractiveness.

The IMF’s data on the currency composition of reserves has shown variations in the dollar’s share. By 2000, the US dollar had reached a peak value of global reserves with a 71% share, and although its share has since decreased by around 14%, it has never fallen below 50%.

What It Takes to Be a Reserve Currency?

In 2009, the US Treasury Department identified six essential criteria that qualify a currency to become a reserve currency. These include the following:

• Share of global GDP
• Share of global trade
• Financial markets index
• Chin-Ito index (an index that measures the financial openness of countries)
• Share of global GDP anchored to currency
• S&P long-term credit rating (a credit rating scale running from AAA to D, plus intermediate ratings between AA and CCC)

To demonstrate the reason why the US dollar is the global reserve currency, the Atlantic Council GeoEconomics Center compared the US dollar to several other currencies, including the euro, the pound sterling, the Japanese yen, the Chinese renminbi, the Indian rupee, and the Russian ruble. The comparison is based on the six essential criteria mentioned above.

* Data provided by Atlantic Council

US Dollar Dominance in Reserve, Trade and Transactions

According to data from the Atlantic Council’s GeoEconomics Center, the US dollar’s dominance has remained strong in terms of exchange reserves, trade, and foreign exchange transactions. The US dollar’s share of global foreign exchange reserves stood at 57% in Q1 2026. The currency’s share of global export invoicing stood at 54%, while its share of global foreign exchange turnover reached 89% in April 2025, based on the Bank for International Settlements’ 2025 Triennial Survey. The table below provides a comparison between the US dollar and several other currencies, including the euro, the pound sterling, the yen, and the renminbi, based on these three important indicators.

The Atlantic Council has sourced this data from the IMF’s COFER, the Patterns of invoicing currency in global trade: New evidence, and the BIS Triennial Central Bank Survey.

* Data provided by Atlantic Council

International Monetary Fund Data on Currency Composition of Official Foreign Exchange Reserves (COFER)

According to the Currency Composition of Official Foreign Exchange Reserves (COFER) database, which is under the management of the Statistics Department of the International Monetary Fund, the following currencies are identified as reserve currencies:

• US dollar
• Euro
• Chinese renminbi
• Japanese yen
• Pound sterling
• Australian dollar
• Canadian dollar
• Swiss franc

All other currencies fall under the category of “other currencies”.

The table below represents the most recent data available on the website of the IMF on Currency Composition of Official Foreign Exchange Reserves (COFER) from the third quarter of 2024 to the first quarter of 2026. As noted by the IMF, the COFER data for individual countries is classified. Currently, there are 149 reporters, including member countries, non-member countries, and foreign exchange reserve entities. The data for the period from 1995 to 1998 is provided on an annual basis, whereas from 1999 onward, every quarter.

As of Q3 2025, the IMF no longer includes unallocated reserves in its COFER dataset.

* Data provided by the International Monetary Fund

Shares of Currency Reserves from Q3 2024 to Q1 2026

The table below provides data on each currency’s respective percentage share from Q3 2024 to Q1 2026.

* Data provided by the International Monetary Fund

The most recent data on the shares of FX reserves by currency for the Q1 period of 2026, represented as a pie chart, is available below.

Shares of Foreign Exchange Reserves by Currency for 2026 Q1

This pie chart illustrates the distribution of global allocated currency reserves for the first quarter of 2026, highlighting the dominant role of the US dollar, which accounts for over half of reserves, followed by the euro and other major currencies.

* Data provided by the International Monetary Fund

Shares of US Dollars for the Q1 Periods from 2017 to 2026

To provide a broader overview of the gradual downward trend in the share of the US dollar of global currency reserves, we provide information about the Q1 periods from 2017 to 2026. As the chart indicates, from 64.22% in 2017 Q1, the US dollar’s share fell to 57.13% in 2026 Q1. This marked a decrease of 7.09 percentage points from 2017 Q1 to 2026 Q1.

* Data provided by the International Monetary Fund

The Rise of Nontraditional Currencies

A blog post available on the IMF website has provided an update on the US dollar’s current standing in the International Reserve System. It continues to lose some of its positions to other currencies in global foreign exchange reserves. However, it has preserved its status as a major reserve currency, with a 57.13% share as of 2026 Q1.

The dollar’s share of allocated foreign reserves of central banks and governments has been decreasing over the last two decades. Despite this declining role, it has not been balanced by an increase in the share of other major currencies such as the euro, yen, and pound. Instead, an increase in the share of nontraditional currencies such as the Australian dollar, Canadian dollar, the Chinese renminbi, and other currencies is being observed.

These trends are demonstrated in the table below. It represents the general tendency of the falling shares of foreign exchange reserves of the USD, EUR, JPY, and GBP, as opposed to a rise in nontraditional currencies (AUD, CAD, RMB, and other currencies) for the Q1 periods from 2021 to 2026.

* Data provided by the International Monetary Fund

Considering that over the last two decades, the value of the US dollar has remained largely unchanged, while its share of global reserves has diminished, central banks have been gradually shifting away from the dollar, as stated in the IMF’s publication. However, the US dollar’s dominance is not ending soon, as the shift is driven more by diversification and structural factors than by a dramatic collapse in confidence.

About the Editorial Team

Zornitsa Stefanova is a Financial Research and Platform Testing Analyst at BestBrokers.com, specialising in hands-on reviews of forex, cryptocurrency and stock trading platforms. She evaluates brokerage companies from a user-focused perspective, testing key areas such as account setup, trading conditions, platform usability, available markets and overall reliability.