Archive · 24 Jun 2025
Central Banks Shift Reserves Away From Dollar, Eye Gold, Euro, and Yuan
Central banks, who manage money for countries, are starting to move their money out of US dollars.
They are looking to put more money into gold, the Euro, and the Chinese Yuan instead.
They are doing this because the world is changing in terms of trade and politics, and they are concerned about the US dollar.
Gold is expected to be the biggest winner right away, while the Euro is seen as having potential to gain in the short term.
The Yuan is favored more over a longer period.
Central banks are shifting investments away from the U.S. dollar.
Gold is seen as a primary beneficiary of this shift, with increased holdings planned.
The euro is expected to gain in the short term, potentially recovering lost ground.
China's yuan is favored for long-term growth in central bank reserves.
Geopolitical issues and trade shifts are driving the re-evaluation of currency reserves.
- Who
- Central banks and reserve managers globally are re-evaluating their currency holdings.
- What
- Central banks are diversifying their currency reserves, reducing reliance on the U.S. dollar and increasing holdings in gold, the euro, and the yuan.
- When
- The shift is underway, with decisions influenced by recent geopolitical events and trade shifts.
- Where
- Global financial markets are impacted, with central banks worldwide making these adjustments.
- Why
- Due to geopolitical upheaval, concerns about the U.S. political environment, and the splintering of world trade.
Dollar's Decline Drivers
Euro's Potential for Growth
Currency Status
Dollar's Decline Drivers
Some view the diminished status of the dollar as related to the U.S. political environment and trade.
Euro's Potential for Growth
Others emphasize the weakening of the dollar's safe-haven appeal.
- Survey Participants
- 75 central banks managing $5 trillion
- Gold Holding Increase
- Net 40% of central banks plan to increase gold holdings over next decade
- Euro Holding Increase
- Net 16% of central banks to increase holdings in next 12-24 months
- Yuan Holding Increase
- Net 30% of central banks to increase holdings over next decade
- Dollar Share Expectation (2035)
- 52%
Sources
Despite geopolitical conflict, prolonged oil supply disruption is unlikely, gold to rally: UBS Report
Oil prices stable as investors await Iranian response to US strikes - Telegraph India
Rupee sinks 23 paise to close at 86.78 against US dollar
Dollar Erases Gain as Fed’s Bowman Signals Support for July Cut
