Mohamed El-Erian Says Dollar's Reserve Shift Is Worth Watching
Benzinga
Last updated: September 7, 2026
Economist Mohamed El-Erian highlights a notable shift in global foreign exchange reserves away from the U.S. dollar. He asserts this trend is being influenced by a limited number of major reserve holders rather than a widespread, uniform move by many countries.
- The U.S. dollar's share in global foreign exchange reserves has decreased, reaching its lowest point in two decades. This decline is attributed to actions taken by a few significant holders, rather than a collective decision across numerous nations.
- El-Erian points out that while the dollar's overall share has fallen, this is not indicative of a global abandonment. Instead, a small group of countries are responsible for the majority of this reserve rebalancing.
- This trend is considered significant and worthy of attention due to the dollar's historical dominance in international trade and finance. The shift, though concentrated, could have implications for global economic stability and the international monetary system.
- The decrease in the dollar's reserve share is not uniform across all countries, with many maintaining their existing holdings. The focus remains on the specific actions of a few key players driving this observed phenomenon.
