No, Japan, China, and Turkey Are Not “Dumping” the Dollar as a Reserve Currency Recent claims that Japan, China, and Turkey are “dumping” the dollar are largely inaccurate, driven by misunderstandings of economic conditions and private investment strategies. While Turkey is selling dollars to support its currency amid crisis, Japan’s sales are primarily from private funds seeking higher domestic yields due to rising interest rates, not central bank policy. China has reduced its holdings but still invests heavily in dollar-denominated assets, and overall foreign holdings of U.S. Treasuries continue to rise globally, reaching a record $9.49 trillion in February 2026.

• Internet claims of a mass sell-off and the end of the dollar’s reign are unfounded.
• Turkey is selling dollars to defend its lira during an economic crisis, not to de-dollarize.
• Japan’s sales of U.S. Treasuries are mainly driven by private investment funds seeking higher domestic yields as interest rates rise.
• China has reduced its U.S. Treasury holdings but still maintains significant investments in dollar-denominated assets.
• Overall foreign holdings of U.S. Treasury securities have increased globally, reaching a record $9.49 trillion by February 2026.
• Valuation losses due to rising U.S. interest rates impacting bond prices are often mistaken for deliberate divestment.
• The dollar remains the dominant global reserve currency, with dollar-denominated securities comprising approximately 57% of global foreign exchange reserves.