The holdings of gold in the foreign exchange reserves of the central banks have been growing worldwide, hitting a 31-year high in 2021. At the same time, US dollar holdings have been dropping in response. Emerging markets are leading the gold-buying spree.

According to the World Gold Council, the banks have built up their stockpile by more than 4,500 tons over the past decade. As of September, the reserves totaled some 36,000 tons, the largest haul since 1990, and up 15% from a decade earlier.

https://i0.wp.com/www.unitedgolddirect.com/images/gold-vs-usdollar3.png?resize=661%2C475

At the same time, the presence of the dollar in foreign exchange reserves has dropped sharply over the past decade. In 2020, the currency-by-currency ratio of the greenback plunged to the lowest level in a quarter of a century.

Analysts say that the central banks, particularly in emerging economies, are continuing their shift to gold, reflecting global concerns about the dollar-based monetary regime. In the first nine months of 2021, Thailand bought some 90 tons, India 70, and Brazil 60.

Central banks and public institutions started boosting holdings of gold after the global financial crisis of 2008, which caused an outflow of funds from US government bonds, resulting in falls in the value of dollar-denominated assets.

RT. com / ABC Flash Point News 2022.

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Rudy Haugenator
Rudy Haugenator
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01-01-22 23:08

Gold prices have remained firm, trading at the $1,806 level per troy ounce as of December 30, 2021.

Piet Ramkous
Piet Ramkous
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02-01-22 03:20

That is why the pirates of the UK don’t give back the gold that belong to the people of Venezuela. 😌

Willem Alaxander
Willem Alaxander
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02-01-22 03:21

When US UK big banks need to steal Venezuelan and other Physical Gold to make payment, this really show they are bankrupt, time to get out of $ fiat

Thorsteinn Hakonarson
Thorsteinn Hakonarson
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02-01-22 03:22

Gold reserves (if not kept in London) make base for bilateral swap deals, bilateral swap reserves and sharing basket of currencies for pricing and CIF purposes service currency. This is because ever increasing US debt and deficit is making EU currencies by dollar privilege equivalence forces EU currencies to develop similarly with next to no growth. Emerging economies have and interest to be on bilateral level with direst trade with the Us and Eu by that, not suffering punishment by dollar inflation hiking prices on resources and services in general. The there is risk of hyper inflation by print, which… Read more »

Scipione Antonio Rino Tagliafe
Scipione Antonio Rino Tagliafe
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Reply to  Thorsteinn Hakonarson
02-01-22 18:21

Gold should be $3,000+ yet it’s not.