Since the regime of foreign exchange seizure and monster sanctions leveled against Russia beginning February 24, 2022, this dollar weaponization has resulted in a reduction in the share of dollars in central bank foreign-exchange reserves worldwide, of just 1.5%, from 59.5% to 58% currently. This is regularly reported as a reassurance to Washington and the Federal Reserve, that the dollar’s dominance still has a long way to run.
However, central bank reserves have another component—gold—and central bank net purchases of gold have been 3,500 tons in 2022-24, equal to the previous eight years’ purchases combined, according to the World Gold Council. The price value of the gold these banks hold in reserves, has also been appreciating steadily during that period, in part driven by the very same three-year explosion in central bank purchases.
