Fresh data from the International Monetary Fund reveals a subtle but notable shift in global currency reserves, with the Chinese yuan and Australian dollar gaining ground while the U.S. dollar's share slipped to its lowest level in over three decades. The dollar accounted for 56.32% of global foreign exchange reserves at the end of the second quarter, marking its smallest slice since the early 1990s. Meanwhile, both the yuan and Aussie dollar increased their holdings by 0.03 percentage points quarter-on-quarter, though each still represents just over 2% of the near $13 trillion reserve pile.

The IMF's adjusted data, published to account for dramatic currency swings, shows that the dollar lost 0.12 percentage points of market share when adjusted for exchange rate fluctuations. The euro, the world's second-largest reserve currency, also saw its position weaken, standing at 21.13% of overall reserves. The data was compiled from reserve managers across 149 economies, with total foreign exchange reserves climbing to $12.945 trillion from $12.540 trillion in the first quarter.

Currency movements played a dominant role in the shifting reserve landscape. The IMF noted that exchange rate effects explained 92% of the reduction in the dollar's share during the three months through June. The dollar index, which measures its performance against a basket of major currencies, fell more than 10% in the first half of the year—its largest drop since 1973—with the dollar weakening 8% in the second quarter alone. These swings were largely driven by market turbulence following Donald Trump's return to the White House and shifts in U.S. trade and economic policies.

Despite the dollar's declining share, analysts emphasize that the changes represent a gradual evolution rather than a rapid dedollarization. The fact that nearly all of the dollar's reserve share decline stems from currency movements—rather than a mass exit by central banks—reinforces its status as the primary safe-haven asset during turbulent times. The overall growth in global reserve assets, which increased by nearly $400 billion this quarter, indicates continued strong demand for reserve currencies amid ongoing market volatility.

London's Metropolitan Police has reversed its longstanding position on grooming gangs in the capital, acknowledging for the first time that it has multiple active investigations into group-based child sexual exploitation. The shift came after an investigation by MyLondon and The Daily Express challenged official statements from both police leadership and Mayor Sadiq Khan, who had consistently maintained there were "no reports" or "no indication" of Rochdale or Rotherham-style rape gangs operating in London.

The investigation uncovered evidence from four separate His Majesty's Inspectorate of Constabulary and Fire & Rescue Services reports spanning 2016 to 2025 that documented at least six potential victims of grooming gang abuse. These case studies, which the Mayor of London personally responded to according to public statements, described children as young as 13 being exploited by groups of predatory men. The reports detailed how girls were plied with drugs and alcohol, raped in hotels by multiple perpetrators, and subjected to life-threatening situations.

Metropolitan Police Commissioner Sir Mark Rowley revealed to Assembly Members at City Hall that the force now acknowledges a "steady flow" of live multi-offender child sexual exploitation investigations and a "very significant" number of historic cases requiring reinvestigation. The commissioner estimated these reviews would cost "millions of pounds a year, for several years" to properly investigate, contradicting previous assertions that the force had "not seen" such cases in London.

Political figures including Reform UK MP Lee Anderson and Shadow Home Secretary Chris Philp have criticized the mayor's handling of the situation, with Anderson stating there is "real, credible evidence that grooming gangs exist in London" and Philp alleging that Khan is "facilitating a cover-up." A spokesman for the mayor maintained that Khan has "always been clear that the safety of Londoners is his top priority" and remains "committed to doing all he can to protect children in London."