💵🔻Global FX Reserves Trimmed USD Exposure Last Year: Cable FX Macro

• Global reserve trends showed gradual USD share erosion (e.g., IMF data on dollar dipping in reserves), with some diversification into gold, euro, or yen amid geopolitical/trade noise. The USD posted losses against all major currencies in 2025; the chart below shows the EUR/USD rising (dollar weakness) from near parity to breaching 1.20 in 2026.

• A Reuters note reported the ECB reducing its USD exposure in early 2025. The piece reports that the European Central Bank sold a small portion of its U.S. dollar holdings during the first quarter of 2025 (early last year) and fully reinvested the proceeds into JPY-denominated assets.

• This action reduced the dollar's weight in the ECB's foreign exchange reserves. The ECB described it as a routine "standard rebalancing" to align with its target allocation for reserves composition—not a major strategic shift away from the dollar.

• However, the move falls in line with a broader diversification away from the dollar. IMF data shows the global dollar reserve share dipping to 56%, the lowest in 30 years.