The global economic order is under strain, and public investors are responding. Just a year ago, central bank reserve managers overwhelmingly favored the U.S. dollar. Many were also prepared to take on more risk to boost returns. Today, that narrative has shifted: the dollar’s dominance is being questioned, and gold is emerging as the safe-haven asset of choice.
OMFIF’s Global Public Investor (GPI) report, which has tracked central bank reserve strategies since 2014, has documented the evolving investment landscape. In its first edition, the report highlighted growing diversification across sectors and geographies, as reserve managers sought alternatives to underperforming traditional currencies in a low-interest-rate environment. Some institutions reduced gold allocations to balance portfolios; others increased them for the same reason.
Over a decade later, the 2025 GPI—based on a survey of 75 central banks—finds the drive for diversification stronger than ever, but now driven by geopolitical risk, not just returns. Nearly 60% of surveyed central banks plan to diversify their portfolios within the next two years, primarily to enhance resilience rather than boost yields.
This year’s survey, conducted from March to May, shows 96% of reserve managers view U.S. tariffs as a major geopolitical concern. Geopolitical issues now rank among the top three investment considerations for over 80% of respondents—above inflation, real interest rates, and even technological shifts.
While the dollar remains the cornerstone of global reserves, its appeal is waning. It was the only major currency to see a drop in demand this year. By contrast, a net 16% of central banks plan to increase their euro holdings, more than double the figure from last year. Emerging market institutions are particularly keen on expanding renminbi reserves.
Gold stands out as the most in-demand asset class. A dedicated section of the report finds that 32% of central banks expect to increase their gold holdings in the short term. Meanwhile, riskier assets like corporate bonds and equities remain on the radar, but shifts in that direction are expected to unfold gradually over the next decade.
Despite these trends, the dollar’s status as the world’s primary reserve currency remains intact. Over 80% of central banks still consider it a safe and liquid asset, and most expect it to comprise more than half of global reserves over the next ten years.
The report also includes findings from a short survey of public pension and sovereign wealth funds, which echo central banks’ caution. Respondents showed reduced appetite for U.S. assets and greater reluctance to take on additional risk. For nearly every asset class, more institutions are maintaining current allocations compared to last year.
In total, the GPI draws on data from 90 official institutions managing over $7 trillion in assets, offering a valuable snapshot of how public investors are adapting to global uncertainty.
As part of this year’s initiative, OMFIF is launching the inaugural Global Public Investor Working Group, bringing together central banks and partner organisations to explore practical strategies for portfolio diversification. The group’s findings will be published at the IMF-World Bank Annual Meetings in October.
