Central Banks Increase Gold Reserves Amid Accelerated De-Dollarisation Efforts

Central banks across the world may continue with the gold buying spree in the coming months. Amid the recent downgrade of the US by Fitch Ratings, the de-dollarisation exercise may further gain momentum. The share of US dollar reserves held as reserves by central banks fell to 58 per cent– the lowest level in 25 years.

According to an International Monetary Fund in a blog, some analysts said that this partly reflects the declining role of the US dollar in the global economy, in the face of competition from other currencies used by central banks for international transactions.

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