ECB Report Notes Global Financial Fragmentation and Central Banks' Shift from US Treasuries to Gold

An annual report from the European Central Bank indicates a growing fragmentation within the global financial system, driven by efforts to reduce reliance on the US dollar. The report highlights a notable increase in gold's share of global central bank reserves, now surpassing the euro as the second-largest component. Conversely, the proportion of US Treasury bonds held in reserves has declined over the past year.