The latest report from the International Monetary Fund (IMF) reveals that the US dollar”s global reserve share dipped to 56.32% in Q2 2025. However, this decline is primarily attributed to exchange-rate fluctuations rather than significant changes in central bank portfolios. Notably, 92% of the decrease stemmed from currency valuation effects, suggesting that central banks have largely retained their US dollar holdings.
The IMF”s Currency Composition of Official Foreign Exchange Reserves (COFER) report provides crucial insights for cryptocurrency investors who are closely monitoring macroeconomic trends. Despite considerable currency volatility during the quarter, the data indicates that central banks maintained stable dollar allocations.
In Q2 2025, the DXY index experienced a notable drop of over 10%, marking its largest decline since 1973. The US dollar fell 7.9% against the euro and 9.6% against the Swiss franc during this period. Although such fluctuations led to a decrease in the USD reserve share, the report clarifies that this change was largely a result of exchange-rate dynamics rather than active portfolio reallocation by central banks.
When adjusted for constant exchange rates, the dollar”s reserve share decreased only slightly by 0.12% to 57.67%. This finding indicates that central banks have made minimal adjustments to their dollar reserves, challenging the prevailing narratives surrounding global dedollarization.
Similarly, while the euro”s reserve share seemingly increased to 21.13%, this growth was also driven by currency valuation changes. At constant exchange rates, the euro”s share actually decreased by 0.04 points, indicating that central banks reduced their euro holdings during the same timeframe.
For Bitcoin and other cryptocurrencies that are often viewed as hedges against US dollar weakness, this analysis presents more subdued macro signals. The data suggests that central banks did not diversify away from the dollar, even amidst significant depreciation.
Traditionally, dedollarization trends are highlighted as potential catalysts for institutional adoption of cryptocurrencies. However, the COFER data—once adjusted for exchange rate impacts—demonstrates that these trends may be misleading without proper context.
The British pound also saw a perceived increase in its reserve share, yet this too was a valuation effect masking a real decrease in holdings. The findings underscore the importance of looking beyond headline figures to grasp the actual liquidity shifts.
The IMF”s research offers a clearer perspective on monetary policy during periods of market volatility. By differentiating between genuine policy shifts and temporary valuation changes, crypto investors can better interpret global macroeconomic trends.
In conclusion, the stability of dollar holdings observed in Q2 2025 illustrates that central banks continue to favor traditional currencies, even as digital assets gain traction. The IMF stressed the significance of exchange-rate adjustments in understanding reserve changes accurately.
