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Central banks’ gold reserves have overtaken the US dollar as their leading reserve asset, signaling a shift in global monetary preferences

Executive summary: Central banks globally have accelerated gold purchases, raising gold’s share of total reserves to 27% and surpassing the dollar‑denominated US bond share of 22%. The shift indicates a weakening confidence in the dollar as the premier reserve asset, with potential repercussions for currency markets, gold valuations, and the composition of international liquidity.

Who is involved: Major central banks (including the Federal Reserve, ECB, PBOC, and others), the IMF as data source, and markets for gold and foreign exchange.

Likely next: Continued gold accumulation by reserve managers, possible upward pressure on gold prices, and increased scrutiny of reserve currency composition at international fora.

According to Expansion, central banks have increased gold holdings at a pace not seen in fifty years, pushing gold to 27% of reserve investments while US Treasury bonds fell to 22%. This reallocation reflects growing concerns over dollar stability and the appeal of gold as a neutral store of value. The trend could influence foreign‑exchange markets, gold prices, and the strategic reserve policies of major economies.

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Analysis — what this means

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