Global Central Banks Plan First Net Reduction in USD Allocations, Shift to Gold on July 1

According to OMFIF's survey of 74 central banks released on July 1, global central banks are planning to reduce USD allocations for the first time in response to rising geopolitical and political risks. The survey marks a historic shift, with more central banks now planning to decrease rather than increase dollar holdings, reflecting declining USD appeal. While the U.S. dollar still accounts for approximately 58% of global central bank reserves, central banks are significantly increasing gold demand at record-breaking rates to hedge against geopolitical volatility and financial instability. Rising U.S. trade policy uncertainty and geopolitical factors have become primary drivers of this diversification trend.
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