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- The US Dollar's role in global reserves is declining
The US Dollar's role in global reserves is declining
At the same time, gold is more demanded than ever
Global Markets Investor
February 18, 2026
In partnership with
GLOBAL MARKETS INVESTOR’S PORTFOLIO IS 🔥UP +95%🔥SINCE JANUARY 2024
DURING THE MARCH-APRIL 2025 MARKET TURMOIL, MAJOR US INDEXES FELL NEARLY 20%, WHILE THE GMI PORTFOLIO GAINED OVER 5%, FIND OUT HOW BELOW:
USD share in global currency reserves dropped to ~40%, the lowest in at least 25 years.
This is down from ~58% a decade ago.
During the same period, gold’s share has risen from 16% to 28%, the highest since the 1990s.
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Gold now accounts for more FX reserves than the EUR, JPY, and GBP combined.
This trend is driven by central banks diversifying away from the US Dollar into gold while the metal prices continue to rise at the same time.
Meanwhile, institutional investors take most bearish stance on the greenback in at least a decade.
The US Dollar net exposure by global fund managers fell to -35 points, the lowest in at least 14 years, according to the BofA Survey conducted in February 6-11.
This is below the April 2025 reading when President Donald Trump shocked world markets with tariffs.
By comparison, at the start of 2025, the net exposure was +30 points, one of the highest readings in the data set.
Additionally, 87% of fund managers surveyed anticipate central banks worldwide to continue reducing their Dollar holdings in their foreign reserves.
13% even expect the pace of diversification to accelerate.
Is there more downside for the US Dollar ahead?
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