The US dollar seems to be becoming a less attractive asset to central banks globally. According to a Bloomberg report, share of USD global reserves has fallen to below 45%. The dip translates to a more than 15 point decline since the start of this decade. Moreover, central bank gold holdings have overshadowed value-adjusted USD reserves. Basically, foreign banks are selling US Treasuries and buying gold. Let’s discuss if the increase in gold holdings is another push towards more de-dollarization.
— Coin Bureau (@coinbureau) May 13, 2026
NEW: US dollar share of global reserves has dropped below 45%, per BBG.
That's more than a 15 point decline since 2020.
For the first time ever, Central Bank gold holdings now exceed valuation-adjusted USD reserves.
Foreign banks are selling Treasuries. Buying gold. pic.twitter.com/MiilRgQGj0
De-Dollarization: Are Countries Moving Away From USD And Towards Gold?
According to the World Gold Council (WGC), demand for gold among central banks was a driving force behind the yellow metal in the first quarter of this year. Poland, Uzbekistan and China were the top gold buyers, while Turkey, Russia and Azerbaijan were the top sellers.
At the heart of the matter is the ongoing US-Iran conflict, which is most likely an attempt to maintain the petrodollar dominance. Iran-China oil deals have been increasingly settled in the Chinese yuan, bypassing the US dollar. However, this development could also be due to Western sanctions placed on Iran. Nonetheless, the US-Iran conflict has likely led to a surge in gold accumulation. Not just central banks, but even retail investors began pivoting their funds into the yellow metal and other commodities. Gold and silver have hit multiple all-time highs since late 2025.
Also Read: De-Dollarization Threatened As USD Deposits Hit Record Highs
The ongoing global scenario has put a question mark on the dollar. Trust in the dollar-based system has also significantly declined over the last few years. Moreover, the US has been at odds with several trade partners, especially after President Trump assumed office. Altogether, the developments seem to pushing the global order towards more de-dollarization. Gold accumulation, therefore, seems to be going up.
News Link: https://watcher.guru/news/de-dollarization-central-bank-gold-holdings-top-usd-reserves