Central Banks Shift From Yield-Seeking to Risk Management: Key Findings from OMFIF’s Global Public Investor Report

The global economic landscape is undergoing a notable transformation, and central banks are adjusting their reserve management strategies in response. OMFIF’s latest Global Public Investor report, which surveyed 75 central banks overseeing more than $7 trillion in assets, highlights a clear reorientation of priorities among reserve managers. Rather than pursuing higher yields through increasingly risky positions, many institutions are placing greater emphasis on safety, liquidity and geopolitical resilience.

The survey identifies several striking trends. Almost all respondents — 96% — singled out US tariffs as a significant concern for reserve management decisions. More than 80% of central banks ranked geopolitics among their top three considerations when building or adjusting their portfolios. These responses reflect heightened sensitivity to trade tensions, sanctions regimes and other cross-border policy tools that can affect liquidity, asset access and valuation.

One of the most visible shifts in allocations is a renewed appetite for gold. According to the report, roughly 32% of surveyed central banks plan to increase their gold holdings in the near term. This marks a reversal for some institutions that had trimmed gold positions in earlier years. For many reserve managers, gold’s combination of perceived safety, diversification benefits and independence from any single currency or financial system has regained appeal amid rising geopolitical uncertainty.

The US dollar, though still widely recognized for its liquidity and safe-haven characteristics, is showing signs of softer demand. The report notes a decline in dollar demand for the first time, even as more than 80% of central banks continue to acknowledge the currency’s safety and liquidity benefits. In practice, this suggests central banks are not abandoning the dollar but are increasingly weighing other assets and currencies as part of a more diversified reserve strategy.

Taken together, these findings point to a broader strategic pivot: from an emphasis on chasing returns toward a focus on risk management and resilience. Reserve managers are confronting an environment of protectionism, geopolitical friction and policy volatility, and they are adapting accordingly. This change does not imply sudden or dramatic portfolio overhauls; rather, the shift is likely to be gradual as managers balance multiple objectives, including liquidity, capital preservation and operational access to assets.

Practical responses by central banks may include modest increases in non-dollar assets, a greater allocation to liquid safe-haven instruments such as gold, and more conservative approaches to duration and credit exposure. Some managers could also enhance stress-testing frameworks and operational contingency plans to account for the risk of asset restrictions or sudden market dislocations. These adjustments aim to protect reserves from an increasingly complex and fragmented global policy environment.

The implications of this transition extend beyond reserve managers. Financial markets, currency dynamics and commodity prices may all be influenced by a coordinated, though measured, move toward diversification. A sustained increase in demand for gold, for example, could affect bullion markets and related instruments. Similarly, any rebalancing away from a dominant currency over time could create new patterns of cross-border liquidity and pricing.

It is important to stress that central banks remain cautious and deliberate. The report’s findings suggest an appetite for diversification without abandoning the established benefits of existing reserve assets. The dollar’s entrenched role and the operational realities of global finance mean that change will be incremental. Nonetheless, the trend toward risk-aware reserve strategies appears likely to continue as policymakers weigh geopolitical risks, trade policies and the evolving architecture of international finance.

In summary, OMFIF’s Global Public Investor report captures a moment of adjustment for reserve managers worldwide. With concerns about tariffs and geopolitics front of mind, central banks are tilting toward safer, more diversified portfolios—highlighted by renewed interest in gold and a cautious reassessment of dollar exposure—while maintaining an emphasis on liquidity and operational reliability.