Finance
Dollar cedes ground to euro in global reserves, IMF data shows
Published by Global Banking & Finance Review®
Posted on July 9, 2025
2 min readLast updated: January 23, 2026
Quick Summary
IMF data shows a decline in the dollar's global reserve share to 57.7% in Q1 2025, while the euro's share rose to 20.1%. This shift sparks debate on de-dollarisation.
Euro Gains Ground as Dollar's Share of Global Reserves Declines
(Corrects July 9 story after the International Monetary Fund revised its Q1 data released to address reporting errors on Swiss franc and Australian dollar. Corrects headline, removes paragraph 3 and 7, updates first chart.)
By Karin Strohecker and Grant Smith
LONDON (Reuters) -The U.S. dollar's share of global currency reserves reported to the International Monetary Fund nudged lower to 57.7% in the first quarter of 2025 while the share of euro-denominated reserves gained, International Monetary Fund data showed.
Shares of global currency reserves held in the greenback stood at 57.8% at the end of 2024, while the share of euros gained from 19.8% to 20.1% - their highest since late 2022, according to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data released on Wednesday.
Foreign currency markets have seen some dramatic swings since the start of the year.
The dollar lost nearly 4% in the first quarter of the year as some big policy swings from the administration under U.S. President Donald Trump, especially on trade, security and the economy, roiled market confidence in the world's foremost reserve currency.
The decline accelerated dramatically in the second quarter, when the dollar dropped more than 7% in the wake of Trump's introduction of sweeping tariffs on "Liberation Day" in early April - though some of those measures have been put on hold.
While currency swings do not equate to reserve managers' willingness to hold them, the latest events have fuelled a debate on whether the U.S. dollar could be in danger of losing its status as the world's reserve currency of choice and the center point of the global monetary system. While some point to nascent signs of de-dollarisation, there is broad agreement that any such shift would be very slow.
Looking at levels in claims, U.S. dollar claims did rise 1.4% quarter-on-quarter to $6.72 trillion, though that gain was outpaced by the euro's 2.6% rise to claims of $2.3 trillion, IMF data showed.
(Reporting by Karin Strohecker in London and Grant Smith in New York, Additional reporting by Alun John, editing by Chizu Nomiyama)
Key Takeaways
- •The dollar's share of global reserves fell to 57.7% in Q1 2025.
- •Euro-denominated reserves increased to 20.1%, the highest since 2022.
- •The dollar dropped nearly 4% in Q1 due to U.S. policy changes.
- •Trump's tariffs in April led to a further 7% decline in the dollar.
- •Debate continues on the potential de-dollarisation of global reserves.
Frequently Asked Questions about Dollar cedes ground to euro in global reserves, IMF data shows
1What percentage of global currency reserves does the U.S. dollar hold?
The U.S. dollar's share of global currency reserves is reported to be 57.7% in the first quarter of 2025.
2How has the euro's share of global reserves changed recently?
The euro's share of global reserves increased from 19.8% to 20.1%, marking its highest level since late 2022.
3What factors contributed to the dollar's decline in value?
The dollar lost nearly 4% in the first quarter due to significant policy changes from the U.S. administration, particularly regarding trade and security.
4What are the claims figures for the U.S. dollar and euro?
U.S. dollar claims rose 1.4% to $6.72 trillion, while euro claims increased by 2.6% to $2.3 trillion.
5What debate has arisen regarding the U.S. dollar's status?
Recent currency swings have sparked a debate on whether the U.S. dollar is at risk of losing its status as the world's primary reserve currency.
