Gold has overtaken US Treasuries as the largest component of global central bank reserves for the first time since the mid-1990s, marking a significant shift in the structure of the international monetary system, Bloomberg reports.

Gold now accounts for 24% of global central bank reserves, compared with 21% for US government debt, according to the data cited. The change represents a sharp reversal from the final quarter of 2015, when Treasuries made up 33% of reserves and gold just 9%.

“Gold now makes up 24% of global central bank reserves, surpassing US Treasuries at 21% for the first time since the mid 1990s,” the data shows.

The reallocation reflects both sustained central bank buying and a sharp rise in gold prices over the past decade. “Gold as a % of central bank reserves has NEARLY tripled over the last decade, driven by both aggressive central bank purchases and surging gold prices,” the figures indicate.

Central banks, particularly in emerging markets, have accelerated purchases in recent years as part of a broader diversification strategy. At the same time, holdings of US Treasuries have declined steadily, with China playing a prominent role in reducing exposure.

As IntelliNews Lambda reported, China and the leading BRICS countries have started to sell off their treasury bill holdings, selling that started in earnest in 2022 after the US weaponised the dollar by seizing Russia’s central bank reserves but accelerated in April last year after the Trump administration launched the Liberation Day tariffs scheme. The selling of T-bills is expected to gain further impetus have the start of Operation Epic Fury that is expect to have widespread negative economic consequences and has undermined the US reputation as a reliable partner.

The shift points to an accelerating de-dollarisation, long the cornerstone of global reserves. While the US dollar remains dominant in trade and finance, reserve managers were unsettled by the seizure of the Central Bank of Russia (CBR) reserves and are now actively reducing the share of dollars in the basket.  Gold is no longer an alternative reserve asset; it has replaced the dollar as the major reserve asset.