The global economic environment is undergoing a deep transformation, prompting central banks to rethink long-held reserve management practices. OMFIF’s most recent Global Public Investor report, which surveyed 75 central banks overseeing more than $7 trillion in assets, highlights a clear reorientation in strategy and priorities.
Among the report’s key takeaways, 96% of reserve managers identify US tariffs as a major concern, and over 80% place geopolitical risks among their top three considerations. This reflects a notable shift from the previous decade, when many central banks focused primarily on chasing higher yields through greater exposure to riskier assets.
Gold has emerged as a prominent beneficiary of this change in mindset. About 32% of central banks say they plan to increase gold holdings in the near term, reversing earlier trends when some institutions trimmed their positions. At the same time, demand for the US dollar shows signs of softening for the first time, even though more than 80% of central banks still regard the dollar as a safe, liquid reserve currency.
Overall, the industry appears to be shifting from a return-seeking posture toward a focus on risk management. Central banks are adapting to an era defined by protectionist measures, heightened geopolitical tensions and increased policy uncertainty. While adjustments to portfolios are likely to be gradual rather than abrupt, the move toward greater diversification and resilience in reserve strategies seems set to continue.