The US dollar's share in India's treasury holdings had been steadily increasing till mid-2024. However, since the US imposed tariffs on India, India has been steadily reducing the share of the US dollar in its treasury holdings and increasing the share of precious metals instead in its holdings. The share of the US dollar in India's treasury holdings is now at its lowest level in the last six years. It was at $241 billion in October 2024, which fell to $190 billion in October 2025. By April 2026, the US dollar’s share in Indian treasury further fell to $181 billion.
This trend has gained momentum not only in India but globally. After the US imposed tariffs on its trade partners, countries around the world are seeking to reduce their dependence on the dollar. While it is true that there is currently no alternative to the US dollar, the world is looking for alternatives. This is why the share of local currencies in global bilateral trade is gradually increasing.
The US is not only aware of this but is also working tirelessly to prevent this from happening. That is why the US has imposed a kind of ban on the potential BRICS currency even before it could be conceptualised and put forth to the world.
In the short to medium term, India will have to rely on several other currencies, including the US dollar. The Indian rupee will not become the primary currency in foreign trade in the immediate future. Indian rupee will be the currency of global trade only if India achieves a trade surplus with a large number of countries globally, and this is only possible if India becomes a manufacturing hub for the world.
Therefore, at present, any buzz around de-dollarization is not fruitful, though not completely meaningless. The dollar will continue to rule the world for at least the next decade. And cryptocurrencies will also not be able to replace the dollar. They will likely remain as another asset class or disappear like tulips in a few years.
In the short to medium term, India will have to rely on several other currencies, including the US dollar. The Indian rupee will not become the primary currency in foreign trade in the immediate future. Indian rupee will be the currency of global trade only if India achieves a trade surplus with a large number of countries globally, and this is only possible if India becomes a manufacturing hub for the world.
Therefore, at present, any buzz around de-dollarization is not fruitful, though not completely meaningless. The dollar will continue to rule the world for at least the next decade. And cryptocurrencies will also not be able to replace the dollar. They will likely remain as another asset class or disappear like tulips in a few years.
Rajeev Upadhyay
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