Overview

• Surveys by OMFIF show that central banks managing $5 trillion in reserves are planning significant shifts in the next two years, including a third boosting gold exposure to a five-year high.
• Reserve managers intend to expand euro holdings, with a net 16% planning increases in the next 24 months and expectations of a rise to about 25% of global reserves.
• Interest in the yuan is rising, with a net 30% of central banks aiming to increase holdings over the next decade and forecasts suggesting its share could triple to 6%.
• Seventy percent of surveyed banks view the U.S. political climate as a deterrent to dollar investment and project its global reserve share falling from 58% now to 52% by 2035.
• China has introduced measures beyond the digital yuan center, including new onshore futures contracts, eased capital controls and an expanded cross-border payment network to boost yuan use.