De-Dollarization Shakes Global Finance: Gold, Yuan & Euro Surge as Power Shifts
The dollar's iron grip on global trade is slipping—and the cracks are turning into chasms. Gold's rallying, the yuan's flexing, and the euro's staging a quiet coup. Here's how the financial map is being redrawn.
Gold: The eternal hedge against chaos
Central banks are hoarding bullion like dragons—because when fiat currencies play musical chairs, you want a seat that doesn't vanish. No yields? No problem. It's the ultimate 'break glass in case of emergency' asset.
Yuan's slow-mo takeover
China's pushing its currency harder than a TikTok algorithm, with bilateral deals bypassing USD settlements. Petro-yuan contracts? Check. Belt-and-Road debt traps? Double-check. The dollar's still king, but the coronation's looking less certain.
Euro's revenge tour
Brussels might move at bureaucratic speed, but EUR's becoming the 'least worst' alternative for nations allergic to both Washington and Beijing. Bonus: ECB rate hikes actually make it attractive for once.
The bottom line? Every empire thinks its currency will last forever—until it doesn't. (Just ask anyone still holding Zimbabwean dollars.)
Banks Want More Gold, Not the Dollar.
According to a new report by the Official Monetary and Financial Institutions Forum (OMFIF), banks managing trillions worth of reserves have now started to ditch the dollar. The report further adds how one in three of such banks may accelerate their exposure to Gold in the coming years, a change that is rapidly gaining momentum in the sector today.
OMFIF said.
The survey conducted among 75 banks tells a stark reality of de-dollarization, adding how the allure towards USD fell 70% in recent times. The primary reason for this change has been attributed to rising tariffs and a declining dollar stance, discouraging investors from exploring the USD.
World central banks expect gold reserves to continue rising:
95% of central banks anticipate global gold reserves to rise over the next year, according to a World Gold Council survey.
A record 43% of those surveyed plan to boost their own holdings during this time.… pic.twitter.com/sv2Kboyl6x
Euro, Yuan, For the Win
The report further adds to how banks have now started to diversify away from the dollar toward other currencies. The report adds that the Chinese Yuan and the Euro have been among the top choices for holding, resulting in an aggressive de-dollarization move.
Per the OMFIF report, nearly 16% of banks surveyed have stated that they plan to explore the Yuan and Euro more aggressively in the next 12 to 24 months.
