English
The U.S. dollar's dominance in global finance is quietly eroding. According to the latest IMF Currency Composition of Official Foreign Exchange Reserves (COFER) data, the dollar's share of global foreign exchange reserves has fallen below 57% for the first time since 1995, reaching 56.9% in Q3 2025 and dropping further in subsequent quarters. This structural decline — from a peak of 72% in 2001 — marks a critical inflection point in the multipolar shift reshaping international finance. Multiple independent indicators, including the IMF's April 2026 Global Financial Stability Report and the World Economic Forum's Global Risks Report 2026, confirm that de-dollarization is accelerating, driven by the weaponization of dollar assets, China's rapid expansion of its CIPS payment system, and record central bank gold purchases.
What Is De-Dollarization and Why Is It Accelerating?
De-dollarization refers to the gradual reduction in the U.S. dollar's role as the world's primary reserve currency, medium of exchange, and unit of account. While the dollar still settles 88% of global foreign exchange transactions and U.S. Treasury markets remain the deepest and most liquid in the world, the trend is unmistakable. The 2022 freezing of $300 billion in Russian central bank reserves by Western governments served as a watershed moment, prompting central banks from Beijing to Brasília to diversify away from dollar-denominated assets. The weaponization of financial sanctions has fundamentally altered the risk calculus for reserve managers globally.
China's Cross-Border Interbank Payment System (CIPS) has emerged as the most tangible alternative to the dollar-dominated SWIFT network. By March 2026, CIPS recorded 750,540 transactions valued at 19,329.45 hundred million RMB (approximately $270 billion) in a single month. The system now connects 194 direct participants and 1,597 indirect participants across 117 countries, with total annual business volume reaching 180 trillion yuan ($25 trillion) in 2025. While the yuan still accounts for only 3% of global SWIFT payments versus 48% for the dollar, CIPS's growth trajectory — 43% annual volume increase in 2024 — signals accelerating adoption, particularly among BRICS+ nations and energy exporters.
Central Bank Gold Rush: 1,100+ Tonnes in 2025
Central bank gold purchases have become a defining feature of the de-dollarization landscape. According to the World Gold Council, net purchases surged to 230 tonnes in Q4 2025 alone, bringing the full-year total to 863 tonnes. However, unreported buying — particularly by China, which stopped reporting its purchases in May 2024 — likely pushed the true figure above 1,100 tonnes. The National Bank of Poland was the largest publicly reported buyer, adding 102 tonnes, followed by Kazakhstan (57 tonnes), Brazil (43 tonnes), and Turkey (27 tonnes).
Gold's share of global reserves has risen from 13% in 2017 to approximately 30% in 2025, with BRICS+ nations now holding 17.4% of global gold reserves, up from 11.2% in 2019. The central bank gold buying spree reflects a strategic shift toward neutral, sanction-proof reserve assets. The World Gold Council projects 750-850 tonnes of official purchases in 2026, suggesting this trend has structural staying power.
BRICS Local Currency Trade and the Petroyuan Shift
Perhaps the most concrete evidence of de-dollarization comes from trade settlement patterns. BRICS nations now settle approximately 67% of intra-bloc trade in local currencies, up from under 20% a decade ago. This shift is underpinned by bilateral swap agreements, local currency settlement infrastructure, and the gradual expansion of the BRICS+ bloc, which now represents 48.5% of the world's population and over 40% of global GDP.
The petrodollar system — the cornerstone of dollar dominance since the 1970s — is also showing cracks. Saudi Arabia has increased yuan-priced oil exports to China from 15% to 22%, and similar trends are emerging across the Middle East and Africa. The petroyuan's gradual rise