The de-dollarization wave is now gaining rapid momentum, with central banks exploring ways to diversify their holdings beyond the US dollar. A new Reuters report confirms a stark reality of the dollar’s allure waning within the global banks as de-dollarization takes hold. In addition to this, global banks have now begun to eye other lucrative assets, such as the Chinese yuan, gold, and the euro, to back their reserves, thereby keeping the dollar at bay.
Also Read: HSBC Sees Euro at 1.20 as De-Dollarization Accelerates
Banks Want More Gold, Not the Dollar.
According to a new report by the Official Monetary and Financial Institutions Forum (OMFIF), banks managing trillions worth of reserves have now started to ditch the dollar. The report further adds how one in three of such banks may accelerate their exposure to gold in the coming years, a change that is rapidly gaining momentum in the sector today.
“After years of record-high central bank gold purchases, reserve managers are doubling down on the precious metal,” OMFIF said.
The survey conducted among 75 banks tells a stark reality of de-dollarization, adding how the allure towards USD fell 70% in recent times. The primary reason for this change has been attributed to rising tariffs and a declining dollar stance, discouraging investors from exploring the USD.
“World central banks expect gold reserves to continue rising: 95% of central banks anticipate global gold reserves to rise over the next year, according to a World Gold Council survey. A record 43% of those surveyed plan to boost their own holdings during this time. Furthermore, 76% of respondents believe that gold will hold a larger share of global reserves over the next 5 years. At the same time, 73% foresee US dollar holdings declining. Responses were fairly consistent between central banks in advanced, emerging markets, and developing economies. Gold is on fire.”
World central banks expect gold reserves to continue rising:
— The Kobeissi Letter (@KobeissiLetter) June 21, 2025
95% of central banks anticipate global gold reserves to rise over the next year, according to a World Gold Council survey.
A record 43% of those surveyed plan to boost their own holdings during this time.… pic.twitter.com/sv2Kboyl6x
Euro, Yuan, For the Win
The report further adds to how banks have now started to diversify away from the dollar toward other currencies. The report adds that the Chinese Yuan and the Euro have been among the top choices for holding, resulting in an aggressive de-dollarization move.
Per the OMFIF report, nearly 16% of banks surveyed have stated that they plan to explore the Yuan and Euro more aggressively in the next 12 to 24 months.
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