The U.S. dollar-denominated money supply grew 3.87% in Q2 2025. Meanwhile, the U.S. Dollar Index (DXY) dropped 7.03% – one of its sharpest quarterly declines in recent history.
This dramatic drop in the dollar didn’t just shake currency markets — it amplified the rise in global M2 when measured in dollars. With foreign currencies strengthening against the greenback, even modest increases in local currency M2 looked much bigger in dollar terms. When measured at constant exchange rates, global M2 only rose 1.19%, a much tamer pace.
The domestic trend is striking. M2 money supply, which includes physical currency, checking deposits, savings accounts, money market funds, and time deposits, hit a record $22 trillion.
The data indicates a year-over-year growth of 4.5%, pushing it beyond the previous peak of $21.86 trillion set in March 2022 — the height of the post-COVID monetary flood. While the current growth is below the long-run average of 6.3%, it’s still an impressive jump, especially considering the Federal Reserve hasn’t cut rates and has continued shrinking its balance sheet.