by Wolf Richter
Wolf Street
The decline of Dollar Hegemony. But other options are also shaky.
The global share of US-dollar-denominated exchange reserves – these are financial assets such as US Treasury securities, US corporate bonds, US mortgage-backed securities, etc., held by foreign central banks – declined to 59.2% in the second quarter, according to the IMF’s Composition of Official Foreign Exchange Reserves (COFER) data released today. In Q4 last year, the dollar’s share hit a 25-year low of 58.9%. And by the dreary looks of it, the dollar continues on its long, slow, uneven downward trajectory (2014 is the beginning of the quarterly data, prior data is annual):