TLDR:
- Gold now accounts for 24% of global central bank reserves, overtaking US Treasuries at just 21%.
- Gold’s reserve share has nearly tripled since 2015, driven by central bank buying and rising prices.
- The US seizure of Russia’s reserves in 2022 triggered a global shift away from dollar-denominated assets.
- China and BRICS nations have led steady US Treasury sell-offs since 2022, accelerating de-dollarisation.
Gold surpasses US Treasuries in global central bank reserves for the first time since the mid-1990s, with gold now commanding 24% of reserves against Treasuries’ 21%, Bloomberg data confirms.
The shift, years in the making, reflects sustained central bank buying, soaring gold prices, and a deliberate move away from dollar dependency. geopolitical shocks, from the seizure of Russia’s reserves to escalating US tariffs.
All have accelerated a de-dollarisation trend that is now reshaping the foundation of the international monetary system.
Gold Overtakes US Treasuries in Reserve Composition
Gold now accounts for 24% of global central bank reserves, while US government debt sits at 21%, according to Bloomberg data.
This marks a sharp reversal from the final quarter of 2015, when Treasuries made up 33% of reserves and gold just 9%.
Gold’s share has nearly tripled over the last decade, driven by aggressive central bank purchases and a sustained rise in gold prices.
Emerging market central banks have led this accumulation. These institutions have steadily diversified away from dollar-denominated assets, accelerating purchases as part of broader reserve management strategies.
The trend gained momentum from around 2017, when USD reserve growth began to plateau, while gold continued rising in both price and share.
Gold now makes up 24% of global central bank reserves, surpassing US Treasuries at 21% for the first time since the mid-1990s.
The reallocation reflects a growing preference for assets that carry no counterparty risk. Unlike US Treasuries, gold cannot be frozen or devalued through a foreign government’s policy decisions, making it attractive to reserve managers navigating a more uncertain geopolitical environment.
Geopolitical Shocks Deepen the De-Dollarisation Trend
The pace of change accelerated sharply in 2022 when the US seized Russia’s central bank reserves following the conflict in Ukraine. The move alarmed reserve managers globally and prompted many to reassess their exposure to dollar-denominated assets.
China and the leading BRICS nations began selling US Treasury bills in earnest from that year. Selling intensified further in April 2024 after the Trump administration launched the Liberation Day tariff scheme.
Additional pressure came from Operation Epic Fury, which further undermined confidence in the US as a reliable financial partner. These events together have driven a sustained shift in reserve composition.
While the US dollar remains dominant in global trade and finance, central banks are now actively reducing its share in their reserve baskets. Gold is no longer viewed as a supplementary reserve asset.
It has moved to the center of reserve strategy, holding more weight in global central bank portfolios than US government debt for the first time in nearly three decades.
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