Central Banks Reveal ‘Doubts’ About US Dollar Following Geopolitical Tensions – Here’s Which Currencies They’re Shifting Toward

A new survey of central banks suggests growing skepticism about the future of the US dollar and its role in the global economy.

Analysts from the Official Monetary and Financial Institutions Forum (OMFIF) – an independent think tank organization concerned with central banking, economic policy and public investment – say there is a global shift away from the dollar and into other currencies, primarily the euro and the renminbi.

In the 2025 edition of its Global Public Investor report, which surveys 75 central banks around the world, OMFIF says there are clearly “growing questions over the dollar’s dominance in portfolios and public investors are seeking safe-haven assets.”

The survey notes that lately, euros have outshined dollars and among emerging markets, the renminbi has surfaced as a new favorite.

“The dollar is the only currency where net demand has fallen among central banks this year. This is
attributable to rising concerns about the US political environment, highlighted by 70% of respondents,
up from 31% last year, as well as geopolitics and US fiscal risks. The caution extends to global public funds – more than half think that US market exceptionalism will end.”

However, OMFIF notes that the dollar’s reserve currency status is not yet under threat, given that 80% of central banks surveyed said that the dollar still provides safety and liquidity, and that the “vast majority” expect the greenback to constitute over 50% of global reserves over the next decade.

Rather than a rapid “de-dollarization,” central banks are anticipating a “gradual currency diversification,” according to the report.

As to what’s driving the move away from the dollar, according to the survey, the US political environment under the Trump administration is “directly leading to doubts about the dollar.”

“This factor was selected by 70% of respondents as a discouraging factor for investing in dollar assets, more than double from a year ago. Linked to the recent political shift is the move towards trade protection and broader geopolitical uncertainty – which 60% flagged as an issue, up from 32% last year. Concerns about the fiscal outlook have also increased, with one central bank in Europe mentioning, ‘we are mindful of potential risks stemming from US fiscal imbalances’.”

Read the full report here.

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