Central banks plan to boost gold reserves as dollar dominance wanes — OMFIF survey

A survey by the Official Monetary and Financial Institutions Forum (OMFIF) found that one in three central banks plan to cut their dependence on the dollar and ramp up gold holdings over the next year or two. This marks the highest level of interest in the precious metal in the past five years. Meanwhile, 40% of financial institutions intend to boost their gold holdings within the next decade.

The report offers the first glimpse into the impact of the import tariffs imposed by US President Donald Trump on April 2.

The dollar, last year's top-rated currency in the survey, has plummeted to seventh place this year. According to 70% of respondents, the current political climate in the US is making them less interested in investing in the American currency.

As the shift away from the dollar gains momentum, the euro is strengthening its position. According to the OMFIF survey, 16% of central banks plan to increase their euro holdings over the next 1–2 years, up from just 7% a year ago. Informed sources told Reuters that the currency has the potential to reclaim its pre-2011 crisis share of global reserves and reach 25% by the end of the decade, up from its current 20%.