The world is abandoning the dollar

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Reliance on the dollar as a reserve currency. According to the survey carried out by the International Monetary Fund on the composition of official foreign exchange reserves (COFER), the dollar reserves of central banks around the world decreased by 1%. These reserves represented 71% of its total reserves, but they declined to 59% at the end of 2020, to reach its lowest level in 25 years.

The Fund transmits analyzes indicating that this decline partly reflects the decline in the role of the US dollar in the global economy in the face of competition from other currencies that central banks use in conducting international transactions, noting that “if the shifts in central bank reserves are large enough, it may affect the Currency and bond markets.

The US dollar index indicates the depreciation of the dollar, especially since the beginning of the pandemic. This index is a measure of the value of the US dollar relative to the value of a basket of currencies belonging to the most important trading partners of the United States. The index shows that the value of the US dollar has decreased by 9% since the beginning of the pandemic in March of 2020, as the value of the index at that time was 112.7 points, and it reached 102 points last May. Follow «Capital» on Instagram







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