Federal Reserve says global demand for dollars remains strong

The U.S. Federal Reserve did not reveal a decline in the dollar’s role; instead, it highlighted a robust and record‑high demand for dollars and U.S. Treasury securities worldwide. Foreign investors oversubscribed recent Treasury auctions by 2.64 times, indicating strong appetite for U.S. debt despite lower oil prices and easing commodity pressures.

More than twenty central banks continue to maintain restrictive or prudent monetary policies, and the narrative of “de‑dollarisation” is described as a myth. While some nations have increased gold holdings, the dollar remains the primary reserve, financing and safe‑haven currency, with demand for dollar‑denominated financing and collateral staying elevated.