Global central banks, overseeing approximately $5 trillion in reserves, are actively reducing their reliance on the U.S. dollar, reallocating assets toward gold, the euro, and the Chinese yuan, reports the Baltimore Chronicle with reference to OMFIF.
According to the latest report from the Official Monetary and Financial Institutions Forum (OMFIF), nearly 40% of surveyed central banks plan to increase their gold holdings over the next ten years — the highest figure in five years. The U.S. dollar, once the dominant reserve currency, has dropped to seventh place in terms of appeal. Seventy percent of respondents cited political instability in the United States as the primary reason for reducing their dollar exposure.
Meanwhile, the euro leads in short-term reserve increase expectations, with a net score of +16%. The Chinese yuan is also gaining momentum: its share is projected to double to 6% within the next decade.
Analysts believe the euro could reclaim up to 25% of global reserves if the European Union successfully reforms its bond and capital markets. However, even by 2035, the dollar is expected to retain its position as the leading reserve currency, though its share may decline to approximately 52% from the current 58%.
Earlier we wrote that dollar to remain a key currency in Ukraine’s reserves.