The U.S. dollar maintained its position as the leading global reserve currency but its share decreased to 57.7% during the first quarter of 2025 from 57.8% at the end of 2024 based on IMF data. The euro achieved its highest market share since late 2022 when it reached 20.1% of global reserves.
Financial markets experienced turmoil because of the extensive policy changes that President Donald Trump implemented. The dollar value dropped by 4% during Q1 and then decreased by 7% in Q2 after Trump announced his controversial tariffs in April. The dollar’s sudden depreciation has sparked new discussions about its future position as the global reserve currency despite traditional slow movements in reserve allocations.
The dollar-denominated claims increased by 1.4% during Q1 to reach $6.72 trillion but the euro surpassed this growth rate with a 2.6% increase to $2.3 trillion according to IMF statistics.
