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business2h ago
‘The dollar is losing credibility’: why central banks are scrambling for gold
- Central banks are increasing gold allocations as a hedge amid geopolitical tensions and dollar concerns.
- Many currencies are viewed as less stable, prompting repatriation of gold stockpiles back to domestic vaults.
- The dollar’s share in central bank reserves has fallen but remains dominant, with experts warning of gaps in alternatives.
- Gold is described as the ‘barbarous relic’ and the most reliable store of value in uncertain times.
- Some countries have repatriated or moved to hold more gold in domestic rather than foreign vaults.
- Beijing has built up a large gold stockpile as part of a strategy to rival the dollar in global reserves.
- The Bank of England vaults remain a key center for official gold, serving dozens of institutions worldwide.
- Historically, the dollar has been the primary reserve currency and remains central to global finance despite shifts.
- Experts warn there is no clear replacement for the dollar, keeping gold in focus as a potential alternative.
- Gold’s role as a reserve asset is rising alongside debates about cryptocurrency's future relevance.
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