Why is the dollar at the centre of the world?
Why the world’s currencies speak in dollars.
In almost every foreign exchange trade, the US dollar sits on one side. More than half of the foreign currency that countries keep is in dollars too. The dollar as the world’s common language, in numbers.
In 30 seconds
- In April 2025, the US dollar was on the buying or selling side of 89% of foreign exchange trades (Bank for International Settlements).
- Of the world’s foreign exchange reserves, 57.13% are in US dollars, 20.03% in euros, 5.44% in yen and 1.99% in renminbi (first quarter of 2026, IMF).
- The dollar’s share also moves with exchange rates. About half of the rise in the first quarter of 2026 was a valuation effect of a stronger dollar.
On one side of almost every trade.
When two currencies are exchanged, the US dollar is usually on one side.
Share of foreign exchange trades with the US dollar on one side (April 2025)
Each trade involves two currencies, so the shares add up to 200%.
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The dollar in trading
In the Bank for International Settlements’ 2025 survey, the US dollar was on one side of 89% of foreign exchange trades.[1]
More than half of the national drawer.
More than half of the foreign currency that countries keep is in US dollars.
US dollar share of world foreign exchange reserves (first quarter of 2026)
The euro’s share is 20.03%.
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Shares by currency
According to the IMF’s statistics (COFER), in the first quarter of 2026 the US dollar made up 57.13% of world foreign exchange reserves, the euro 20.03%, the yen 5.44% and the renminbi 1.99%.[2]
Shares move with exchange rates too.
When the dollar strengthens, holdings in dollars look larger.
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Valuation effects
The IMF explains that of the rise in the dollar’s share from 56.42% to 57.13% in the first quarter of 2026, about half came from a valuation effect, as the dollar strengthened slightly against other currencies.[2]
The way of counting changed too.
Since 2025, the IMF has shown all of the world’s foreign exchange reserves by currency.
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The unallocated share
From its statistics for the third quarter of 2025, the IMF removed the “unallocated” portion whose currency was unknown, and now shows 100% of world foreign exchange reserves by currency, back to 2000.[2] When the way of counting changes, so does the way old figures compare.
A scale for reading what comes next.
A scale for reading the dollar’s position.
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Share of trading
How the dollar’s share on one side moves in the Bank for International Settlements’ survey every three years.[1]
Share of reserves
How the shares of the dollar and other currencies move in the IMF’s quarterly statistics.[2]
Exchange-rate effects
How much of a change in shares comes from exchange-rate valuation.[2]
This is not advice
This edition explains how the dollar is used. It does not recommend buying or selling any currency.
Next question
NEXT QUESTIONOther people’s money, kept in a nation’s drawer.NEXT QUESTIONThe largest market in the world has no building.See the Field Notes shelf →What this edition cannot tell you
- A single figure that explains why the dollar is at the centre. This edition shows only the numbers for how it is used.
- The worldwide share of currencies used to invoice trade.