The Donald Trump era has prioritized strict tariff regimens on countries that wish to trade with the US dollar. This new narrative has sparked fears of de-dollarization, impending trade wars, and retaliatory tariffs, which have directly taken a toll on the US dollar’s prestige. The Trump regime, with its harsh trade policies, has led the dollar down and has sparked fresh de-dollarization drives, with global sentiment favoring USD alternatives. In this wake, recent IMF data has revealed staggering details, adding how the global reserve share of the USD has declined consistently. Furthermore, another striking analysis reveals a new currency taking over the global reserve attention, and no, it’s not the Chinese Yuan or the Euro.
Also Read: Russia Says Joe Biden is Responsible For the US Dollar’s Decline
IMF Data Reveals New Global Reserve Competitor
As per the IMF’s Currency Composition of Official Foreign Exchange Reserves, the Swiss franc’s global reserve presence has quadrupled, rising high on the radar in the last year. The study noted that the Swiss franc has grown its reserve share presence by 0.8%, giving stiff competition to the yuan and the euro, which are also leading global reserve share contenders, trailing ahead of the Swiss franc in the current financial race.
This staggering detail outlines the changing investor sentiment and narrative, which was once dominated heavily by the US dollar. As the dollar continues to fall due to multiple external factors, including Trump’s tariff orders and Fed rate cut tension, investors have already started to favor USD alternatives to safeguard their assets in the meantime.
The IMF data further revealed that the Swiss franc has emerged as one of the best-performing currencies this year. The currency has strengthened nearly 14% against the US dollar, portraying its expansive state and stance in the current financial world.
The Swiss Franc (CHF) keeps strengthening – even as the SNB has returned to ZIRP and volatility has declined. This goes against the conventional wisdom and argues something else is going on.
— Patrick Saner (@patrick_saner) July 8, 2025
A few points below. pic.twitter.com/SQDqvEI8jJ
What About The Dollar?
The IMF data explored the dollar’s present circumstances, noting how its global reserve share has now dropped to 57.7% in Q1 2025. The data later outlined how euro-denominated reserves have gained strength against USD in a striking new analysis.
“Shares of global currency reserves held in the greenback stood at 57.8% at the end of 2024, while the share of euros gained from 19.8% to 20.1%—their highest since late 2022, according to the IMF’s Currency Composition of Official Foreign Exchange Reserves (COFER) data released on Wednesday,” Reuters reported.
Also Read: ASEAN Nations Avoiding the US Dollar, Says Malaysia’s PM