The Official Monetary and Financial Institutions Forum (OMFIF) released a report saying that, amidst global trade fragmentation and geopolitical turmoil, central banks holding reserves worth trillions of dollars are considering shifting from USD to gold, EUR and RMB, according to Reuters.

After excluding central banks planning to reduce their holdings, one-third of central banks managing a total of US$5 trillion plan to increase their gold exposure in the next 1-2 years, a new high in at least 5 year, the report said.

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The USD was the most favored currency in last year's survey, but it dropped to seventh place this year, with 70% of respondents believing that the US political environment is deterring investment in USD.

The report found that a net 16% of central banks plan to increase their EUR holdings in the next 12-24 months, making EUR the most in-demand currency, up from 7% in 2024, followed by RMB.

However, over the next decade, RMB is more favored, with an estimated net 30% of central banks expecting to increase their RMB holdings, tripling its share in global reserves to 6%.

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