European central banks are increasingly moving their gold reserves out of the United States, citing geopolitical unrest and improved crisis preparedness. The De Nederlandsche Bank (DNB) recently moved 86 tonnes (95 US tons) of gold from New York to London, with the central bank citing "geopolitical unrest" and stating that moving gold across different jurisdictions would improve its "crisis preparedness." France also removed its remaining gold exposure from the New York Federal Reserve between July 2025 and January 2026, though Bank of France Governor François Villeroy de Galhau said it was not politically motivated. Several politicians in Germany and Italy — which hold the world's second- and third-largest gold reserves respectively — have called for their countries' gold to be removed from the US amid concerns about the Trump administration's unpredictable policymaking and growing antipathy toward the European Union, including threats to annex part of Greenland.
Central banks have demonstrated unprecedented gold accumulation in recent years, with record purchases of 1,136 tonnes in 2022, followed by 1,051 tonnes in 2023 and 1,045 tonnes in 2024. As reported by The Economic Times, even in 2025, purchases remained strong at 863 tonnes, far above the long-term annual average of 473 tonnes recorded between 2010 and 2021. According to the World Gold Council, this sustained buying has become a major support factor for gold prices and could continue if reserve diversification accelerates. A recent survey by the World Gold Council found that central banks have accumulated an average of 1,000 tonnes of gold over the past four years, up from the 500-tonne average over the preceding decade. The increased central bank demand represents a clear beneficiary of the de-dollarisation trend, with central banks increasingly focused on where and how they store their reserves to maximize resilience and flexibility.
The Dutch central bank's decision to move gold to London rather than the Netherlands highlights the importance of liquid trading hubs for crisis preparedness. As per Deutsche Welle, London is considered one of the most liquid trading hubs in the gold market, with the Bank of England estimated to hold around 400,000 gold bars worth around $270 billion (€232 billion). Krishnan Gopaul of the World Gold Council explains that "the idea is that in the event of a crisis, in stress periods, that gold can be potentially mobilized." Central banks are paying greater attention to where reserves are held as well as what assets they hold, mainly to maximize resilience and flexibility of reserve holdings. The US dollar's share of global foreign exchange reserves has fallen to around 56%, marking a multi-decade low from 64% in 2015, while the dollar's transactional dominance remains evident in areas including foreign exchange volumes and trade invoicing.
While the dollar is unlikely to be replaced overnight, a gradual decline in its dominance is possible as more countries adopt local-currency trade arrangements and diversify their reserves. According to the Bank for International Settlements' April 2025 survey, the dollar was on one side of 89.2% of all foreign exchange transactions, which was higher than in 2022. The Federal Reserve has noted that the dollar is overwhelmingly important in trade invoicing outside Europe, where the euro is more prominent. Global Defense News reports that China's renminbi faces structural constraints due to capital-account restrictions and regulatory uncertainty that limit global investors' willingness to hold large positions. The euro is in a stronger institutional position because it is already freely traded and supported by large, sophisticated financial markets, with the European Central Bank's 2025 assessment placing the euro at around one-fifth of global official foreign exchange reserves at constant exchange rates.
While the dollar is unlikely to be replaced overnight, a gradual decline in its dominance is possible as more countries adopt local-currency trade arrangements and diversify their reserves. As reported by The Economic Times, if de-dollarisation gains momentum, gold demand could remain strong and the influence of US monetary policy on global commodity markets may gradually diminish. The United States is unlikely to favour any move that weakens the dollar's global role, but it cannot prevent sovereign nations from choosing alternative settlement methods. Increased use of multiple currencies could lead to higher volatility in international trade, while gold stands out as a clear beneficiary due to rising central bank demand. The gross national debt of the United States has officially surpassed $40 trillion for the first time, climbing steadily due to structural budget deficits, with roughly 80% owned by domestic and foreign investors.
