Survey reveals majority of reserve managers intend to reduce USD exposure over the next decade while increasing gold allocations.
A survey of global reserve managers shows central banks plan to reduce U.S. dollar holdings for the first time in a decade, citing geopolitical risks and debt concerns. The shift marks a break from the dollar’s long-standing dominance in global reserves, though no mass exit is expected.
Gold remains the top reserve asset central banks intend to add, according to the Official Monetary and Financial Institutions Forum. While the dollar still accounts for the largest share of reserves and Treasury demand stays strong, managers are diversifying to hedge against reliance on a single currency.
Reserve managers pointed to geopolitical tensions, rising government debt, and evolving trade relationships as key reasons for the change. The trend reflects a broader strategy to mitigate risks rather than abandon the dollar entirely.