For the first time since 1996, foreign central banks now hold more gold than US Treasuries, marking a notable shift in global reserve asset allocation
For the first time since 1996, foreign central banks now hold more gold than US Treasuries, marking a notable shift in global reserve asset allocation. Since 2015, China has notably diversified its reserves, increasing gold holdings from 1.0% to 6.8% while reducing US Treasury holdings from 32% to 22%. Gold’s share of global international reserves reached 24% in the first quarter of 2025, the highest in 30 years, surpassing the Euro and trailing only the US Dollar. Analysts suggest this trend reflects declining confidence in the US dollar and a move toward a multipolar currency system supported by gold. Additionally, the rise of Bitcoin, viewed as a form of digital gold with issuance limits and liquidity, is considered a potential new component in reserve currency structures alongside gold and US Treasuries. This rebalancing occurs amid concerns over sovereign debt refinancing challenges and increasing government debt levels, prompting central banks to explore alternatives including digital currencies. The shift highlights a broader move away from fiat currencies toward tangible assets like gold and silver as stores of value.
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Source: https://thedefiant.io/news/markets/foreign-central-banks-hold-more-gold-than-us-treasuries-first-time-since-1996-4f4af786
