De-Dollarization of Central Bank Reserves in the World Economy: 2015–2025

The U.S. dollar’s share in global central banks’ foreign reserves has declined by slightly over 1.5% between 2015 and 2025. When gold is included as foreign reserves, the decline is significantly larger, 12%. We find that the average USD share in total reserves declines by 12 percent, while the gold share increases by 8 percent and other reserve assets by 4 percent. The rise in the share of gold is primarily explained by gold price appreciation. In the case of sanctioned Russia, appreciation is 78%, while physical gold accumulation accounts for 22% of the increase in the value of gold reserves. In China, 91% of the increase in the share of gold is due to gold appreciation, while only 9% is due to gold accumulation. In India, the respective proportions of active versus passive accumulation were 80% and 20%, while in Japan they were 96% and 4% respectively. Physical gold accumulation took place in China (538 metric tons), Russia (915 mt), India (322 mt) and Japan (81 mt). For Germany, France, Italy, Spain, England, and Switzerland, 100% of the share of gold reserves took place passively due to gold appreciation, with no change in physical gold held. Reserve de-dollarization takes place in all ten countries, except for Switzerland, whose USD assets rose by 2% of total reserves. In most cases, de-dollarization reflects valuation effects rather than substantial reductions in dollar asset holdings.