The study included 90 central banks, government pension funds, and sovereign wealth funds, which collectively manage approximately $10 trillion in assets.
The findings are consistent with the global debate over the dollar’s status as the primary reserve currency. The debate is being fueled by uncertainty over U.S. policy and heightened geopolitical risks, Reuters reports.
The Shift Toward Multipolarity and the Search for Alternatives
Despite the discussions, there is no clear alternative to the dollar yet. This year, the U.S. dollar has strengthened by 3% amid high U.S. interest rates, demand for U.S. assets, and a flight by investors to safe-haven assets triggered by the military conflict between the U.S. and Iran.
Nevertheless, 79% of central banks and 60% of sovereign wealth funds believe that the global currency system is moving toward a multipolar world.
Currencies outside the G8 are gradually strengthening their positions in reserve portfolios. Central banks are increasing their holdings of the Norwegian krone and the New Zealand dollar, and are also showing increased interest in the British pound.
Respondents maintain their plans to increase investments in the euro and the Chinese yuan, but note that the positions of both currencies are held back by structural problems. At the same time, nearly all survey participants cited the yuan as an effective tool for portfolio diversification.
Gold at the Center of Strategy
Gold, which regularly hits new all-time highs, is currently held by 82% of central banks. According to the report, this precious metal “has moved to the center of reserve management strategies.”
In the short term, central banks plan to build up their positions most aggressively in gold: on a net basis, 30% of respondents intend to increase its share over the next 1–2 years.
Among sovereign wealth funds, real assets—infrastructure and real estate—are in the highest demand. About 60% of these investors plan to increase their allocation to these assets over the next two years.
The survey also revealed a shift in attitudes toward emerging markets (EM). Thirty-eight percent of global sovereign wealth funds plan to increase their investments in emerging economies, compared with 27% last year.
Interest in EM has surpassed demand for assets in developed markets (DM), where the share of those planning to increase their allocation has fallen to 25% (compared to 47% a year earlier). The United States and China remain the most attractive markets, partly due to their leadership in the field of artificial intelligence.
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