An OMFIF survey of 74 central banks shows for the first time more institutions plan to reduce dollar allocations than increase them over the next decade, reflecting diminished dollar appeal amid rising U.S. political and geopolitical risk and greater U.S. trade-policy uncertainty. The dollar still represents about 58% of global foreign-exchange reserves and remains dominant in the near term. A record share of respondents intend to increase gold holdings to hedge geopolitical and financial-system

An OMFIF survey of 74 central banks shows for the first time more institutions plan to reduce dollar allocations than increase them over the next decade, reflecting diminished dollar appeal amid rising U.S. political and geopolitical risk and greater U.S. trade-policy uncertainty. The dollar still represents about 58% of global foreign-exchange reserves and remains dominant in the near term. A record share of respondents intend to increase gold holdings to hedge geopolitical and financial-system risk. The euro and the renminbi are gaining traction for international trade and reserve diversification, and some emerging-market currencies are drawing interest, signaling gradual reserve diversification while the dollar’s marginal advantage declines.