The share of the US dollar in total central bank reserves has decreased from 72% in 2001 to 58% in 2023. This reduction has been significantly influenced by the rising preference for gold, which has eroded the USD’s dominance. One of the primary factors driving central banks to consider gold as an alternative reserve asset is the impact of US sanctions and the freezing of foreign assets of countries engaged in conflicts. These actions have prompted a shift in central bank strategies, leading them to diversify away from the USD to safeguard their assets against potential geopolitical risks.
July 05, 2024 - BY Admin