The finding marks a historic first in the think tank’s annual assessment of public investors, signaling what analysts describe as a gradual but meaningful shift in sentiment toward the world’s dominant reserve currency.
The survey, which covered central banks, sovereign wealth funds, and public pension managers overseeing roughly $10 trillion in assets, suggests that concerns over political stability in the United States and rising geopolitical tensions are reshaping long-term reserve strategies.
Dollar’s Dominance Faces Growing Scrutiny
While the U.S. dollar remains firmly entrenched as the world’s primary reserve currency, the report highlights an emerging hesitation among global institutions about further deepening their exposure.
There is still no obvious replacement for the dollar, and it has remained relatively strong—rising about 3% this year, supported by high U.S. interest rates, continued demand for American assets, and its traditional role as a safe-haven currency during crises such as the U.S.–Iran conflict.
However, sentiment is shifting beneath the surface. According to the survey, “79% of central banks, and 60% of public funds, believe the global monetary system is transitioning towards a ‘multipolar’ world,” reflecting growing expectations that no single currency will dominate the system in the future.
Currencies such as the Norwegian krone, New Zealand dollar, and British pound are gradually gaining attention in reserve portfolios, alongside ongoing—but cautious—interest in the euro and China’s renminbi. Even so, structural concerns continue to limit the scale of diversification into some of these major alternatives.
Still, nearly all respondents reportedly view the yuan as a useful tool for portfolio diversification, even if it is not yet seen as a full alternative reserve anchor.
Gold Reasserts Its Role in Global Reserves
One of the clearest winners in the evolving landscape is gold, which has surged to record price levels and is now held by 82% of central banks.
The survey describes gold as having “moved to the centre of reserve management strategy,” reflecting its renewed importance as a hedge against volatility, inflation, and geopolitical risk.
In the near term, it is also the asset class central banks are most likely to increase exposure to, with a net 30% of respondents planning to boost allocations over the next one to two years.
Volatility Becomes the New Normal
OMFIF’s findings also point to a broader philosophical shift among global public investors, who are increasingly adjusting to persistent uncertainty rather than expecting a return to stable economic conditions.
“The old assumption that public investors can wait for the environment to normalise looks increasingly unrealistic,” wrote OMFIF senior economist Yara Aziz, underscoring how institutions are recalibrating strategies around sustained volatility.
Many respondents indicated they are actively exploring new approaches to risk management, including greater reliance on artificial intelligence to process data and improve decision-making.
AI Becomes a Strategic Priority for Central Banks
Artificial intelligence is emerging as a key area of investment across the global financial system. The survey found that more than 66% of central banks plan to expand AI integration in the near term, while very few institutions report being satisfied with current levels of adoption.
Usage is currently concentrated in areas such as data analysis and internal operations, but adoption levels vary sharply across regions. While over 89% of central banks in advanced economies are already using AI tools, that figure drops to 44% in emerging markets.
The report also highlights a broader divide in capability and infrastructure, suggesting that AI could further widen operational gaps between developed and developing financial systems if not addressed.
Shifting Capital Flows and Emerging Market Interest
Beyond currency reserves, public funds are also reassessing broader investment allocations. Demand for real assets such as infrastructure and real estate continues to grow, with nearly 60% of respondents planning to increase exposure in the next two years.
There is also a noticeable reorientation toward emerging markets. About 38% of public funds now intend to raise allocations to developing economies, up from 27% in the previous year.
This growing interest has overtaken appetite for developed markets, which has fallen sharply from 47% to 25%. Despite this shift, the United States and China remain the most attractive destinations, largely driven by their central roles in the global artificial intelligence boom.
A Gradual Rebalancing of the Global Financial Order
Taken together, the findings suggest the early stages of a structural rebalancing in global finance—one in which the dominance of a single currency is increasingly questioned, diversification strategies are accelerating, and technology is reshaping how risk is managed.
While the U.S. dollar remains the backbone of the international financial system for now, the direction of travel among global reserve managers appears to be slowly but steadily changing.