Dollar reserve share edged higher after US-Iran war, IMF data show

The US dollar’s share of global foreign exchange reserves rose to 57.1% in the first quarter of 2026 from 56.4% in the prior quarter, according to IMF COFER data cited in an Econbrowser analysis. After adjusting for movements in major exchange rates against the dollar, the increase was smaller, to 56.8%, suggesting that valuation effects accounted for part of the shift after the US-Iran war.

The IMF’s Currency Composition of Official Foreign Exchange Reserves database tracks how central banks and other reserve managers allocate reported holdings across major currencies. The latest figures, using the IMF COFER version dated June 30, 2026, show the dollar remaining the dominant reserve currency, followed by the euro, British pound, Japanese yen and Chinese yuan.

Valuation effects cloud the signal

Reserve shares can move even when official institutions do not buy or sell securities. When the dollar strengthens, the dollar value of euro, sterling or yen reserves declines when translated into US dollars. That arithmetic can raise the dollar’s reported share of global reserves without any new allocation toward dollar assets.

Econbrowser’s calculation controlled for valuation effects by holding exchange rates at their fourth-quarter 2025 levels and adjusting for moves in the euro, pound and yen against the dollar. On that basis, the dollar share still rose in the first quarter, but by less than the unadjusted IMF data indicate.

The analysis said the unadjusted rise could reflect either a move into dollars during a period of geopolitical stress or the effect of a stronger dollar. The adjusted series points to a more modest increase in dollar holdings once currency translation is taken into account.

Reserve managers still signal diversification

OMFIF’s 2026 Public Investor Report found that reserve managers remain cautious, with 56% of respondents saying they intend to increase diversification and 54% planning to expand the size of their reserves. Econbrowser said that, if the survey is accurate and the war is resolved, dollar holdings could resume their longer-running decline in share terms.

The OMFIF report also said gold continues to be acquired as part of the diversification effort. Econbrowser noted that the move toward gold was visible in earlier reserve data, although complete first-quarter gold holdings were not yet available.

Separate reserve aggregates cited by Econbrowser show foreign exchange reserves in level terms returning toward earlier peaks. Total reserves including gold have already surpassed their previous high, according to calculations using IMF COFER, World Gold Council and NBER recession-date data.

The distinction matters for policymakers and investors because reserve composition can affect demand for sovereign bonds, currency liquidity and the role of the dollar in cross-border finance. The latest IMF data show a small near-term rise in the dollar share, while survey evidence from OMFIF points to continued interest in spreading reserves across currencies and gold.

This story draws on original reporting from Econbrowser.