So what changed this year? Why are the Central Banks acting di | The Financial Analyst
So what changed this year? Why are the Central Banks acting differently?
This year in February, the US sanctioned Russia's $500B FX reserves (mostly lying in US assets/ US bank accounts) and Russia has been barred from using their own FX reserves.
This sent shivers down the global Central Bank's community which have historically been buying majorly the USD and very small portions in GOLD for their FX reserves because the USD is the easiest mode of transactions globally.
This sanctioning of reserves made the Central Banks rethink their strategies, thus, the global Central Banks (at least who are not completely aligned to the US hegemony) have started converting their USD denominated FX reserves into GOLD.
