Goldberg, Hannaoui and Parthasarathy argue in Liberty Street Economics that the dollar’s reserve decline is concentrated

Goldberg, Hannaoui and Parthasarathy argue in Liberty Street Economics that the dollar’s reserve decline is concentrated

The Federal Reserve Bank of New York’s Liberty Street Economics published this analysis on September 2, 2026. Linda S. Goldberg, Oliver Hannaoui, and Sneha Parthasarathy argue that the falling dollar share of global official foreign exchange reserves does not show a widespread move away from dollar assets. Their distinction is between the “preferences channel”—countries reallocating existing reserves among currencies—and the “reserve change channel,” in which countries’ reserve portfolios grow or shrink. They find roughly equal numbers of countries increased and decreased their dollar shares, while a small number of large reserve holders account for much of the aggregate decline. For 2019 to 2023, the sixty-two countries with complete data collectively increased their dollar allocations through the preferences channel; the authors infer that China, Russia, Mexico, and Morocco, whose 2023 allocations are missing, account for most of the decline under assumptions matching the observed aggregate movement. The authors conclude there is little evidence of widespread official diversification away from dollars. They say reserve holdings remain driven by countries’ needs for dollar liquidity, currency management, and insurance against funding shocks, and that understanding concentration matters for policymakers and market participants interpreting the dollar’s international role. The 2

Publication: 7a9be209-c8cd-5af4-0d34-10024de949b5

attribution — pass: The reading correctly attributes the analysis to Linda S. Goldberg, Oliver Hannaoui, and Sneha Parthasarathy in the New York Fed's Liberty Street Economics. Their conclusions are kept as the authors' claims. The page is a single analytical post, not a listing.

Linda S. Goldberg, Oliver Hannaoui, and Sneha Parthasarathy

summary — uncertain: The summary ends mid-sentence with the fragment "The 2", which leaves visible broken text; the smallest repair is to delete or complete it. The term "official foreign exchange reserves" is central, but it is never explained in plain language, and no definitions are supplied. A non-specialist may not know these are currency assets held by central banks. The reserve change channel is also described only as portfolios growing or shrinking. It omits the key mechanism: reserves change at dollar shares different from the global average, which mechanically shifts the aggregate. Otherwise the summary is faithful, and the question is fair.

countries can accumulate or decumulate new foreign exchange reserves at dollar shares different from the global average, which we call the “reserve change channel.”

date — pass: The evidence date, 2026-09-02T14:00Z, matches the dateline and the reading's September 2, 2026. The retrieval date is disclosed. The source is a publisher page, so no archive disclosure is needed. Adjacent-post navigation and related-story links are not used. There is no hindsight framing.

September 2, 2026 Are Central Banks Moving Out of Dollar Assets?

support — pass: Each claim matches its excerpt. The reading frames the inferred contribution of the four countries as resting on the authors' assumptions. The limitations accurately note the data gap and the scope limited to official reserves. No unsupported benefits, costs, or forecasts are added.

This suggests that the aggregate dollar share decline over 2019 to 2023 is almost entirely attributable to the preferences of these four countries.

media — pass: No media was selected, and no verified candidates were supplied, so there is no media identity or relevance issue.