Kathmandu. The U.S. dollar has ruled the world for decades. However, its dominance has declined in recent years.
The dollar continues to deteriorate this year. In the first six months of the year, the dollar index fell 10.8 percent. This is the dollar’s worst performance since the end of the Gold Bretton Woods system in 1973. The system was created in 1944. In this, gold was made the basis of dollars and stable exchange rates.
This is the worst performance for the dollar in any six months since 2009. Also, the Bloomberg Dollar Spot Index fell for the sixth consecutive month. Earlier, eight years ago, this index had decreased for such a long time.
This year, the dollar fell 14.4 percent against the Swiss stock, 13.4 percent against the euro, 10.5 percent against the Japanese yen and 9.6 percent against the pound. Us President Donald Trump’s taxes, the country’s deficit spending crisis and pressure on the Fed to cut interest rates have disappointed investors with the dollar. For this reason, the US dollar has come closer to the market area.
In recent years, many countries have reduced the dollar’s share in their foreign exchange reserves and increased the share of gold. In the second quarter of 2025, the share of gold in global reserves reached 23 percent. Which is the highest in 30 years.
The share of gold in global reserves has doubled in the last six years. Central banks in many countries of the world, including China, Turkey, India and Poland, are rapidly increasing their gold reserves. China’s central bank bought gold for the seventh month in a row in May. Not only this, China is also encouraging its citizens to increase their gold holdings.
In the second quarter of this year, the share of the US dollar in global reserves fell by 10 percentage points to 44 percent. This is the lowest since 1993. – Agency
