Geopolitical Economy Report Dedollarization grows: Countries drop dollar assets, as gold overtakes US Treasury bonds
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Jan 2, 2026 The trend of de-dollarization is accelerating, with countries and investors moving away from the US dollar. Central banks are increasingly buying gold, which has now surpassed US Treasury holdings as a reserve asset. Washington's sanctions and tariffs have backfired, prompting nations to seek alternatives in finance. The emergence of payment systems like BRICS Pay and the growing internationalization of the renminbi highlight the shift toward a multipolar financial order. This dynamic is reshaping global trade and investment landscapes.
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De-dollarization Accelerated In 2025
- De-dollarization accelerated in 2025 as countries and private investors sought alternatives to dollar assets.
- Ben Norton links this shift to U.S. sanctions and the weaponization of the dollar driving global diversification.
Central Banks Cut Dollar Holdings
- Foreign central banks' share of dollar assets fell to under 57% by Q3 2025, reflecting deliberate reserve diversification.
- Ben Norton highlights China reducing U.S. Treasury holdings as a clear example of this trend.
China Slowly Cuts U.S. Treasuries
- China reduced its U.S. Treasury holdings throughout 2025 and dropped from second to third largest foreign holder.
- Norton notes China avoided an overnight sell-off to prevent a U.S. bond market crisis, calling it a potential "nuclear option."