KARACHI: Offshore holdings of the US Dollar have surged to unprecedented levels, underscoring the currency’s unrivaled dominance in global finance despite mounting efforts by rival powers to challenge its supremacy.
Latest figures show that deposits of US Dollars in banks outside the United States have climbed to nearly $14.5 trillion, marking a more than 220 percent increase from the roughly $4.5 trillion recorded at the start of the century.
By comparison, offshore deposits of the euro stand at just $3.5 trillion, highlighting the widening gap between the greenback and its closest competitor. Meanwhile, the US Federal Reserve and domestic commercial banks collectively hold over $19 trillion in deposits. This means offshore US Dollar deposits now amount to about 43 percent of domestic US bank deposits — a ratio unmatched by any other currency.
The figures come at a time when geopolitical rivals are actively seeking to erode the Dollar’s dominance.
Iran has recently attempted to break the backbone of the “petro-dollar” system by proposing oil trade settlements in ruble or yuan, while both China and Russia have stepped up efforts to encourage regional and bilateral trade in their respective currencies. Beijing has promoted yuan-based energy contracts, and Moscow has pressed for ruble-denominated trade within Eurasia.
Yet, despite these initiatives, the Dollar’s grip on global finance remains firm. Analysts note that the scale of offshore holdings reflects extraordinary global demand for the US currency, which continues to serve as the preferred medium for trade, investment, and reserves across continents.
With no other currency approaching such levels of offshore usage, the data reaffirms the Dollar’s status as the world’s preeminent reserve currency — a position that continues to shape fiscal and monetary dynamics worldwide, even in the face of concerted efforts to build alternatives.
