London —
More central banks plan to cut their dollar holdings than increase them over the next decade for the first time, according to a global survey, reflecting a rise in political risk associated with the US currency.
The findings come amid a Middle East war partly started by the United States, which upended global energy markets, and as US President Donald Trump looks for new ways to enact tariffs, highlighting America’s increasingly unpredictable foreign policy agenda.
The survey, published Tuesday, was carried out by the Official Monetary and Financial Institutions Forum (OMFIF), an independent research group headquartered in London. It was conducted between March and May, and includes responses from 74 central banks around the world.
It is the first time the survey has found a desire to decrease dollar allocations overtaking the intention to increase them since it started recording central banks’ investment intentions in 2023.
