[Is 'De-dollarization' an 'Illusion'? New York Fed: Most Central Banks Have Not Sold Off the Dollar] BlockBeats News, September 7, the latest research from the New York Federal Reserve indicates that although the share of the U.S. dollar in global official foreign exchange reserves has dropped from 64% to 56% over the past decade, this change does not imply that central banks worldwide are systematically reducing their holdings of dollar assets. Researchers stated that there is almost no evidence of widespread official efforts to diversify away from the dollar. The study shows that since 2015, the number of countries increasing and decreasing their dollar assets has been roughly equal during two distinct periods. The decline in the dollar's reserve share has been primarily driven by concentrated portfolio adjustments by a small number of large reserve managers, rather than a global, widespread reallocation of assets. From 2015 to 2019, the changes were mainly influenced by two central banks; from 2019 to 2023, Mexico and Morocco also became significant factors. The New York Fed noted that most economies' foreign exchange reserve adjustments still primarily serve conventional purposes such as meeting dollar liquidity needs, exchange rate management, and addressing funding chain shocks, rather than actively avoiding the dollar. Furthermore, IMF data also shows that the dollar's reserve share fell to its lowest level since 1995 this January, largely due to the passive depreciation of reserve assets caused by the weakening of the dollar exchange rate, rather than large-scale dollar sell-offs by central banks. [Original Link]