Geopolitical Economy Report Dedollarization grows: Countries drop dollar assets, as gold overtakes US Treasury bonds
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Jan 2, 2026 The trend of de-dollarization is accelerating, with countries and investors moving away from the US dollar. Central banks are increasingly buying gold, which has now surpassed US Treasury holdings as a reserve asset. Washington's sanctions and tariffs have backfired, prompting nations to seek alternatives in finance. The emergence of payment systems like BRICS Pay and the growing internationalization of the renminbi highlight the shift toward a multipolar financial order. This dynamic is reshaping global trade and investment landscapes.
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Officials Pull Back, Private Investors Fill Gap
- Foreign official holders' purchases of U.S. Treasuries stagnated while private investors grew their share.
- Norton links this divergence to central banks de-risking and hedge funds exploiting basis trades in dollars.
Gold Overtakes U.S. Treasuries
- In 2025 central banks held more gold than U.S. Treasuries for the first time since 1996, marking a historic reserve shift.
- Norton says this signals an end to the recent 'Treasury standard' and a move toward diversified, multipolar reserves.
Gold As A Neutral Reserve, Not A Standard
- Norton rejects a return to the gold standard while noting gold's resurgence as a neutral reserve asset.
- He argues countries will keep floating fiat currencies but settle more imbalances with gold holdings.