Latest Research
PULSE - February 03, 2026
Dollar Dominance Concerns Mount into Early February
Elevated Concerns Over U.S. Dollar Reserve Status
Perscient's semantic signature tracking language questioning the dollar's reserve currency status once again rose this week to a z-score of 5.7, up by 1.3 from the prior week. This elevated reading and continued widening reflect growing commentary suggesting that structural shifts in global reserve management may be underway, even as the dollar retains formidable advantages in trade and settlement.
The most striking development is the shift in central bank reserve composition. For the first time in three decades, central banks globally now hold more reserves in gold than in U.S. Treasuries by value. Global central banks net sold $48 billion in dollar reserves in January alone, with the dollar's share falling to 58.2%, a low not seen since 1995. Simultaneously, central banks net purchased 150 tons of gold, bringing gold's share of reserves to 12.5%. This rebalancing has been led by India, China, Brazil, and Poland, who have reduced Treasury holdings while accumulating gold at a pace that surveys suggest will continue, with 95% of central banks expecting to increase gold reserves in 2026.
