Why central banks around the world buy gold at record rates for the third year in a row? Will the dollar lose its status as a key reserve currency? Evgeny Goryunov, Head of the Monetary Policy Department at the Gaidar Institute considered this topic with the RTVI.
According to the expert, growth in gold reserves is linked to governments' desire to diversify their assets amid geopolitical uncertainty and declining trust in certain US government decisions. However, it is premature to consider an irreversible weakening of the dollar.
"There are currently no fundamental reasons for the dollar and euro to lose their status as leading reserve currencies. The increase in gold purchases is partly due to countries' desire to diversify their reserves amid geopolitical uncertainty, but it's premature to talk about the irreversible decline of the dollar system," noted Evgeniy Goryunov.
He emphasized that the dollar's main advantage remains the largest and most liquid US financial markets, which still lack full-fledged competitors. At the same time, gold will retain an important role in international reserves and may be increasingly used as a tool for facilitating financial transactions between countries. According to Evgeniy Goryunov, in the coming years, much will depend on US economic policy and the course of the new leaders of the Federal Reserve System.