Central Banks Ditch the Dollar: The Gold Rush Reshaping Global Finance

2026-06-22 economy

Basel, Sunday, 21 June 2026.
A historic shift is underway as 73% of central banks reduce reliance on the U.S. dollar, opting for gold and alternative assets. In 2025 alone, central banks purchased 863 tonnes of gold—nearly double the pre-2022 average—with 45% planning further increases in 2026. For the first time since 1996, gold now surpasses U.S. Treasuries as a reserve asset. This trend, driven by geopolitical risks and sanctions, signals a potential end to dollar dominance and the rise of a multipolar currency era.

The Gold Rush: Central Banks Lead the Charge Away from the Dollar

In 2025, central banks collectively purchased 863 tonnes of gold, nearly doubling the pre-2022 annual average of 473 tonnes [1]. This unprecedented buying spree marks a fundamental shift in global reserve strategies, with 73% of central banks surveyed expecting the U.S. dollar’s share of global reserves to decline significantly within five years [2]. The trend accelerated following the 2022 freezing of $300 billion in Russian foreign reserves, which served as a wake-up call for nations seeking to reduce exposure to Western financial sanctions [3].

Record-Breaking Gold Acquisitions Reshape Reserve Portfolios

The scale of central bank gold purchases from 2022 to 2025 shattered modern records, with over 1,000 tonnes acquired annually for three consecutive years [1]. Poland’s central bank led the charge in 2025 with 102 tonnes, marking its second consecutive year as the top buyer [1]. Other notable purchases included Kazakhstan’s 57 tonnes (its highest annual acquisition since 1993) and Brazil’s 43 tonnes after a four-year hiatus [1]. These purchases reflect a broader strategy to diversify away from traditional reserve assets, particularly U.S. Treasuries, which saw China reduce its holdings from $1 trillion to $651 billion between 2023 and April 2026 [4].

Gold Overtakes Treasuries: A Historic Milestone

April 2026 marked a historic turning point when gold surpassed U.S. Treasuries as a share of global central bank reserves for the first time since 1996 [5]. Gold now accounts for approximately 27% of total official reserves, compared to 22% for U.S. debt instruments [5]. This shift occurred as the dollar’s share of allocated global reserves fell to 56.32% in Q2 2025, even after accounting for valuation adjustments [6]. The World Gold Council’s 2026 survey revealed that 45% of central banks plan to increase their gold reserves, with 83% expecting gold’s share of total reserves to rise over the next five years [7].

Geopolitical Risks Drive Strategic Reserve Reallocation

Central banks cited three primary motivations for increasing gold holdings: crisis protection (90%), long-term store of value (84%), and portfolio diversification (82%) [7]. The 2022 sanctions against Russia demonstrated gold’s unique advantage as an asset with no issuer, counterparty, or political address that cannot be frozen or sanctioned [3]. This geopolitical calculus has led to a strategic repositioning of reserves, with central banks systematically reducing exposure to dollar-denominated assets. The trend extends beyond gold, as evidenced by Saudi Arabia’s 2024 participation in Project mBridge, a cross-border CBDC platform developed by the Bank for International Settlements that enables real-time payments bypassing the dollar-based correspondent banking system [8].

Sources

central banks reserve currency