economy

January 16, 2026

‘The dollar is losing credibility’: why central banks are scrambling for gold

Experts say central banks are increasingly stuffing their vaults as an insurance policy in a volatile world

‘The dollar is losing credibility’: why central banks are scrambling for gold

TL;DR

  • Central banks are increasing gold stockpiles due to geopolitical tensions and declining trust in the US dollar.
  • The share of gold in central bank reserves has doubled in the past decade.
  • Many central banks are repatriating gold held overseas and reducing exposure to the US dollar.
  • The US dollar's credibility is diminishing due to factors like erratic policymaking and the use of economic sanctions.
  • Gold has surpassed the euro to become the second-most important reserve asset after the dollar.
  • Central banks are concerned about the 'weaponization of reserves' and prefer to hold gold domestically.
  • Countries like Poland, Kazakhstan, Azerbaijan, and China are leading in gold purchases.
  • The US holds the largest gold reserves, though its Fort Knox vault has not been officially audited since 1953.
  • Cryptocurrencies are seen as a potential future reserve asset but face volatility and security concerns.

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