Central Banks Diversify Reserves Amid Geopolitical Fragmentation, OMFIF Survey Shows

A new survey, 'Global Public Investor 2026,' by the Official Monetary and Financial Institutions Forum (OMFIF) indicates that central banks are entering a new phase of reserve management, prioritizing geopolitical fragmentation, technological disruption, and an uncertain international monetary system over yield. For the first time in the survey's history, more central banks anticipate reducing their allocations to the US dollar over the next decade, signaling a broader diversification strategy as reserve managers adapt to a more multipolar global economy. The survey, which gathered responses from 90 central banks, sovereign wealth funds, and public pension funds managing over $10 trillion in assets, highlights that geopolitical considerations are becoming as influential as monetary policy in long-term investment decisions.