Analysts at the International Monetary Fund (IMF) are puzzled. The fact is that the share of the Australian dollar and the Singapore dollar in international reserves has increased. Meanwhile, interest in the US dollar has slumped.
Recently, the IMF highlighted growing interest in alternative reserve currencies, particularly the Singapore dollar, the Australian dollar, the yuan, and the South Korean won. This shift is attributed to the fact that major reserve holders like Russia have started to treat the US dollar with greater caution. While the US dollar remains a key reserve currency, it occasionally yields ground to non-traditional currencies in international reserves.
Some countries, such as Switzerland, prefer to hold a significant portion of their reserves in euros because their main trading partner is the eurozone. Nevertheless, IMF analysts assert that the dollar's role in international reserves is still strong.
Earlier, currency strategists at RBC Capital Markets remarked that the process of global de-dollarization is ridiculously slow. According to analysts, the move away from the dollar is mainly driven by the search for higher yields in other Western currencies.
Notably, Russia has started discussions on de-dollarizing trade with Latin America and is also exploring ways to switch to national currencies in transactions with Cuba, Nicaragua, Venezuela, and BRICS members.