Part 3/9:
This decreasing exposure isn't an isolated incident but part of a broader international recalibration of reserve portfolios. Many central banks are adopting a more cautious stance, reflecting waning confidence in the US dollar’s long-term stability. The weakening of the dollar over recent years, losing roughly 40% of its value against gold, has further fueled concerns about the currency’s robustness as a global reserve.
Accompanying the reduction in US debt holdings, India has increased its gold reserves by over 39 metric tons in just a 12-month window, reaching nearly 880 tons by June 2025. This surge represents one of the largest year-on-year increases in recent memory, highlighting a strategic shift towards tangible, safe-haven assets.