The End of Hegemony? DXY U.S. Dollar Reaches Century Lower Level in Global Reserves

Igor Pereira · January 3

Traders, the graph you see from Bloomberg. Intelligence is not just a statistic; it is the visual confirmation of Structural Dedollarization. Institutions are not just "talking" about diversifying; they are running this on a massive scale.

By Igor Pereira Financial Market Analyst

The participation of the Dollar American in global foreign currency reserves has fallen to its lowest level of this century. Below, I analyze what this collapse of ~63% (in 2000) for the current levels means for the future of money and for the price of Gold.

The chart shows a relentless tendency to fall.

Trend: Since the turn of the century, the domination of the dollar has been corroded. But notice the recent acceleration from 2020/2022. IMF data and independent analyses confirm that the dollar's participation in allocated reserves has fallen to minimum decades, turning around 56-57% in official data, but models that include "shadow reserves" and gold show even less relevance.
The "Weaponization" Reason: The use of the dollar as a weapon of sanctions (freezing of Russian reserves) accelerated the need for Central Banks to seek neutral assets. If your money can be frozen, it's not a secure reserve.

If Central Banks are selling dollars (or simply not buying new ones), where are they allocating capital?

Gold (The Neutral Active): They're trading trust debt (Treasuries) for real asset without counterparty risk.
Diversification: There is also a migration to non-traditional currencies (such as Australian Dollar, Canadian Dollar and Renminbi).

Math is simple:

Less Call for Dollar: When the world needs less dollars to save as a reserve, the intrinsic value of the currency tends to fall in the long run.
Repair: Commodities are quoted in dollars. If the Dollar is worth less (loss of share), the nominal commodity price (Gold, Silver, Oil) needs to rise to compensate for the depreciation of the denominator currency.
Devalued Hedge: Investors and nations use precious metals as direct protection against this erosion of the global reserve currency.

U.S. Exorbitant Privilege is decreasing. The graph shows that the world is preparing for a multipolar system.

My recommendation: Don't fight the secular trend.

Short Term: The Dollar may have technical spikes, but the macro trend is of low participation.
Long Term: Have assets that Central Banks are buying (Gold) and avoid the asset they are discarding (overdollars).
Silver: As Silver is more volatile and industrial, it will benefit doubly: by the fall of the Dollar and by the real demand, functioning as a "surcharged gold" in this scenario.

Game Turned: Anticipate the New World Order

We warned you that dedollarization was not a conspiracy theory, but a statistical fact. Public analysis shows the chart, but only members Premium know which specific assets (beyond physical gold) will perform better in this new monetary regime.

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