Global Central Banks Plan to Keep Buying Gold, Reduce USD Holdings — Many Eye Larger RMB Reserves

Global Central Banks Plan to Keep Buying Gold, Reduce USD Holdings — Many Eye Larger RMB Reserves

By Wu Juanjuan, China Fund News

On June 30, the Global Independent Think Tank OMFIF released its "2026 Global Public Investor Report," which shows that a growing number of central banks plan to increase their holdings of the Chinese renminbi (RMB). For the first time, the number of central banks planning to reduce US dollar holdings has surpassed those planning to increase them.

The "2026 Global Public Investor Report" surveyed 90 institutions, including 74 central banks and 16 public pension or sovereign wealth funds, representing combined assets exceeding USD 10 trillion.

Central Banks Plan to Continue Buying Gold

The survey report indicates that traditional government bonds account for 41% of surveyed central banks' investment portfolios, while gold represents an average of 15%. Additionally, 82% of central banks hold physical gold. On a net basis, 30% of central banks plan to increase their gold allocation over the next one to two years (the net percentage of central banks planning to increase holdings minus those planning to reduce). By June 2027, 61% of respondents expect gold prices to range between USD 5,000 and USD 6,000 per ounce. Moreover, 51% of respondents cited "hedging against geopolitical risks" as their primary motivation for gold purchases, up 11 percentage points from 2024.

Growing Appetite for RMB as Reserve Currency

The report also highlights a notable shift in reserve currency preferences. An increasing number of central banks expressed intentions to increase their RMB holdings, underscoring the renminbi's rising status in global reserve management. This trend aligns with broader efforts to diversify reserve portfolios away from traditional reliance on the US dollar. The share of central banks planning to reduce their USD exposure has, for the first time in the survey's history, exceeded those planning to increase it.

Diversification Away From the Dollar

The findings reflect a structural shift underway in global reserve management. Central banks are increasingly seeking to diversify their foreign exchange reserves amid evolving geopolitical dynamics, concerns over the weaponization of the dollar-based financial system, and a desire to enhance portfolio resilience. The renminbi, supported by China's deep financial markets, expanding bilateral currency swap lines, and the growth of the Cross-Border Interbank Payment System (CIPS), is emerging as a beneficiary of this diversification trend. The report suggests that the RMB's role in global central bank portfolios is set to grow, even as the dollar remains the dominant reserve currency for now.

(Source: China Fund News / Securities Times)