Frankfurt (ANTARA) - Gold has become the largest component in global\nofficial foreign exchange reserves in 2025, surpassing holdings of US\ngovernment bonds and the Euro as rising gold prices increase its share.\nThis was reported by the European Central Bank (ECB) on Tuesday\n(2\/6).<\/p>\n
By the end of 2025, gold accounted for 27 per cent of total official\nforeign exchange reserves, including foreign currency reserves and gold\nholdings, while US government bonds accounted for 22 per cent and the\nEuro for 15 per cent, the ECB reported.<\/p>\n
Data released by the ECB shows that gold purchases by global central\nbanks surged in 2022, peaked in 2024, and subsequently slowed in 2025.\nGold purchases by central banks fell to approximately 850 tonnes, below\nthe average between 2022 and 2024, which exceeded 1,000 tonnes. Despite\ngold prices being at historically high levels, demand for gold remains\nstrong.<\/p>\n
The increase in gold\u2019s share of official foreign exchange reserves\nwas largely driven by price surges, according to the ECB. Gold prices\nsurged in nominal value by 60 per cent in 2025 and 30 per cent in\n2024.<\/p>\n
In addition to diversification, central banks use gold as a hedge\nagainst geopolitical risks. However, compared to fiat currencies, gold\u2019s\nstatus as part of foreign exchange reserves has limitations, including\nits price volatility, its inability to generate returns\n(non-remunerability), high storage costs, and its inelastic supply, the\nECB report stated.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/gold-surpasses-us-government-bonds-and-euro-in-foreign-exchange-reserves-1780855818", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }