World's reserve currencies explained...

World reserve assets are the “safe” stores of value that central banks use to protect their currencies, manage crises, and support international trade. Over time, a small set of assets has become the core of the global financial safety net.

Because direct access to live data tools is unavailable right now, this overview focuses on the five main types of reserve assets widely recognized in global finance, not an exact ranked list by current percentages.

1. US Dollar Assets

The US dollar is the dominant reserve currency and most central banks hold a large part of their reserves in dollar-denominated assets such as US Treasury bonds and high‑grade dollar securities.
Its strength comes from the size of the US economy, deep and liquid financial markets, and the fact that many commodities (like oil) are priced in dollars.

For long‑term wealth builders, this shows why global markets often move based on US interest rate decisions and why diversification beyond one currency is important.

2. Euro Assets

The euro is the second major reserve currency, backed by the combined economic power of the Eurozone.
Central banks hold euro‑denominated government bonds and deposits to diversify away from the dollar and support trade with Europe.

This matters because shocks in Europe (debt crises, policy changes) can affect global liquidity and exchange rates, not just EU countries.

3. Gold

Gold is the classic reserve asset: it has no default risk, is accepted globally, and tends to hold value in inflation or crisis.
Countries like the US, Germany, Italy, France, Russia, China, and India hold thousands of tonnes of gold as a long‑term hedge against currency risk.

For individuals, this is the logic behind holding some allocation to gold (physical or digital) as protection when paper currencies lose purchasing power.

4. Other Major Currencies (Yen, Pound, etc.)

Besides the dollar and euro, central banks also hold reserves in other “hard” currencies like:

• Japanese yen

• British pound sterling

• Swiss franc

• Canadian and Australian dollars

These are used to diversify risk and facilitate trade and financial flows with those countries. For investors, this highlights why multi‑currency exposure can reduce dependence on any single economy.

5. Special Drawing Rights (SDRs) & IMF Reserve Position

SDRs are an international reserve asset created by the IMF, based on a basket of major currencies (currently including USD, EUR, CNY, JPY, GBP).
They are not a currency used by the public, but central banks can exchange SDRs for hard currencies during stress, and an IMF reserve position reflects a country’s ability to draw on IMF resources in a crisis.

These act as extra backup layers in the global system, supporting countries when foreign exchange reserves are under pressure.

Even without exact live percentages, the pattern is clear:

• The US dollar still dominates.

• The euro and a few other strong currencies provide diversification.

• Gold remains the timeless hedge.

• SDRs and IMF positions sit in the background as emergency buffers