The US dollar has entered a softer phase and hit new DXY lows in 2025. Global markets tie the weakness to renewed interest in metals and recent policy moves.
The Federal Reserve‘s policy choices and Donald Trump‘s tariff measures have pressured dollar strength. Still, observers debate whether this signals true de-dollarization or a temporary retreat.
According to a report by Economics TD, “completely displacing the USD as the global reserve currency and the central currency in international trade and finance is not realistically in the cards.” The report adds that dollar assets remain abundant and no convincing alternative exists.
Jack Prandelli highlighted official reserve shares in a social post, noting “In 2025, the US Dollar holds a massive 58% of global allocated foreign exchange reserves worth over $11.5 trillion total.” (Ed. note: 58% equals roughly $11.5 trillion.) He listed the euro at 20%, the yen at 6%, the pound at 5%, Canadian and Australian dollars combined near 5%, and the renminbi about 2% as shared.
The cited analysis says flows into dollar assets have returned to trend, dollar use stayed stable, and official reserves were mostly unchanged. In short, the USD remains the most widely available and commonly accepted global currency, and its privileged position cannot be dislodged quickly.
