![]() "It seems reasonable to speculate that the main driver of the collapse in USD's reserve status in 2022 may have reflected a panicked reaction to property rights being jeopardised. ![]() And in 2022, it tumbled to 47% of total global reserves.Ĭoordinated sanctions against Russia alerted many countries, pushing them to seek currency alternatives - for trade settlements and reserve build-up. and its allies against Russia have startled large reserve-holding countries, most of which are from the Global South."Īccording to Jen's calculations, the greenback's share of official global reserve currencies dropped from 73% in 2001 to about 55% in 2021. "The dollar suffered a stunning collapse in 2022 in its market share as a reserve currency, presumably due to its muscular use of sanctions," Jen wrote. In 2022, the USD's share as a global reserve currency fell at ten times the average pace of the past 20 years, Jen said in a report. ![]() The dollar's loss of its reserve currency status accelerated last year when the greenback was used against Moscow as part of the sanction package after Russia invaded Ukraine. Markets need to pay closer attention to the de-dollarization trend since the greenback is losing its power as a reserve currency faster than many analysts are noticing, according to Stephen Jen, CEO and co-CIO of Eurizon SLJ Capital. Receive a comprehensive recap of the day's top stories directly to your inbox. Get all the essential market news and expert opinions in one place with our daily newsletter.
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