Reuters: Central banks plan to cut dollar reserves

More central banks around the world plan to reduce their U.S. dollar holdings than increase them over the coming years, a survey by the Official Monetary and Financial Institutions Forum (OMFIF) showed.

For the first time, the number of reserve managers intending to cut dollar allocations exceeded those planning to raise them, with geopolitical risks and reserve diversification cited as key reasons. 

While the dollar remains the world’s dominant reserve currency, central banks are showing growing interest in gold, the euro, the Chinese yuan and several smaller currencies. About 30% of respondents said they intended to increase gold holdings over the next one to two years. 

Analysts said the trend reflects gradual reserve diversification rather than a rapid move away from the dollar. 

N.Tebrizli