The report from Japan and other regions highlights a shift among the world’s central banks as they diversify their reserve holdings, reducing exposure to the dollar and the yuan. This trend was noted by Nikkei Asia.
According to the IMF, the dollar’s share in foreign exchange reserves declined to a historic low of 58.9%, while the yuan stood at 2.2%. In 2023, central banks bought a record amount of gold, adding 183 tonnes to reserves and reaching 1,030 tonnes for the year.
As nations seek balance for their foreign exchange reserves amid geopolitical turbulence and economic swings, demand for gold as a defensive asset continues to rise. Global gold consumption is projected to reach a record 4,899 tonnes in 2023, encompassing investments, jewelry, and central bank purchases.
Experts noted that central banks are shifting reserve allocations toward gold to preserve value amid a weakening dollar and yuan.
World gold production rose by about 1 percent last year, totaling 3,644 tonnes.
Earlier reports indicated how much the Ministry of Finance planned to spend on foreign currency and gold purchases in August.
There was also a noted decline in Russia’s international reserves as recorded by the Bank of Russia.