For the first time in over a decade, foreign central bank holdings of U.S. Treasuries at the New York Fed have dropped below $2.8 trillion, the lowest level since 2012. In just two months, over $130 billion in Treasuries have been pulled. Could this be an early sign that the world is quietly moving away from the dollar?
We’ll unpack:
– Why the Fed’s “custody holdings” data matters more than you think.
– How the U.S. dollar index (DXY) just saw its steepest six-month drop in 50 years.
– What this means for America’s debt crisis, trade deficits, and global credibility.
– Why foreign investors and central banks may be losing trust in U.S. institutions and the Federal Reserve’s independence.
And whether this signals the beginning of a multipolar financial order — where emerging economies reclaim economic and political sovereignty.
Despite the dollar’s continued dominance — still used in 90% of FX trades and holding 60% of global reserves — cracks are showing. Gold reserves are rising. Confidence is eroding. The world is slowly preparing for what might come next.
Credit to : World Affairs In Context