The De-dollarization agenda has reached the walls of the New York Federal Reserve building quite literally. The US Treasuries held at the New York Federal Reserve building in Lower Manhattan on behalf of global central banks have slumped to their lowest in 13 years. The development highlights the declining appetite for the US dollar-based financial assets from foreign countries.

The US dollar-denominated custody holdings are falling, taking de-dollarization to the corridors of the Federal Reserve building. Reuters reported that the latest US Treasuries held on behalf of foreign central banks in the New York Federal Reserve stands at $2.78 trillion. That’s the lowest since August 2012, and it is down by $130 billion. Even the Federal Reserve is now coming face-to-face with de-dollarization in 2025.

Even close to two years ago, the US Treasuries at the NY Fed stood at $2.95 trillion. Central banks of foreign countries have cut down on the US dollar-based assets since then. According to the latest data from the International Banker, countries such as China, Japan, India, and the UK have been steadily cutting down on US Treasuries. De-dollarization is coming from all corners and has knocked on the doors of the Federal Reserve.

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De-Dollarization: New York Federal Reserve Holding US Treasuries on Behalf of Foreign Central Banks Experiences a Dip

Central banks of foreign countries began de-dollarization much before the Liberation Day, sending a clear message to the Federal Reserve. They have been cutting down on US Treasuries long before Trump imposed tariffs and kick-started the trade wars. The tariffs have nothing to do with the declining US Treasuries, wrote JP Morgan analysts. “Latest data releases confirm there is no substantial evidence of an abrupt rotation away from US Treasuries after Trump’s April tariff announcements.”

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“The fact that these custody holdings have fallen so fast might be a sign that central banks have become less enamored of the Treasury market – and the dollar – in recent months,” said Standard Bank’s Steve Barrow. Central banks have kept the de-dollarization initiative on the lap of the Fed in New York in 2025.