European Central Bank (ECB) Report: Gold Has Replaced U.S. Treasuries as the World's Preferred Reserve Asset
Svmuu News According to a report by the Financial Times, gold has surpassed U.S. government bonds to become the world's top reserve asset. A report released by the European Central Bank on Tuesday shows that by the end of 2025, gold accounted for 27% of global central bank reserve assets, up from 20% a year earlier. Over the same period, the share of U.S. Treasury bonds fell from 25% to 22%. The share of euro-denominated reserve assets remained unchanged at 15%. Reserve assets are highly liquid assets used by central banks to support their currency exchange rates, fulfill international payment obligations, and provide liquidity support during financial turmoil. This shift in composition reflects that many countries are seeking alternatives to the U.S. dollar, the de facto global reserve currency. Efforts to find alternatives have accelerated notably since 2022, when the United States used sanctions to freeze Russia's dollar reserves following the outbreak of the Russia-Ukraine conflict. European Central Bank President Christine Lagarde wrote in Tuesday's report: "Geopolitical tensions continue to drive strong demand from central banks for gold."
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