Gold Is Now the 2nd Largest Central Bank Reserve Asset

“Gold’s status as a Central Bank and bank reserve asset is escalating. According to Bank of America, gold has surpassed the euro to become the second largest reserve asset after the U.S. dollar. To be more precise, B of A should have specified that it is the eastern hemisphere Central Banks that are diversifying out of the U.S. dollar and the euro and buying gold and yuan. Nevertheless, gold now represents 16% of global bank reserves. The dollar represents roughly 58% of Central Bank reserves, down from over 70% since 2002.”

Gold Is Now The 2nd Largest Central Bank Reserve Asset | Investment Research Dynamics

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

Leave a Reply

Discover more from Lighthouse Economics

Subscribe now to keep reading and get access to the full archive.

Continue reading