Dollar and Gold Storage Under Fire Amid Global Sanctions

The freezing of Russian assets by Western countries following the start of the war in Ukraine in 2022 has prompted some nations to reassess their reliance on dollar reserves and storage of gold at Western financial centers.

According to French newspaper Les Echos, central banks have accelerated efforts to reduce the share of the US dollar in their reserves. This shift is largely attributed to the freezing of Russian assets in 2022 by Western countries.

The newspaper notes that storing gold for third countries was previously a preserve of the Federal Reserve Bank of New York and the Bank of England, which provided access to the most liquid markets on the planet.