Global central banks continue to focus on accumulating gold aiming to benefit from the precious metal’s historical attributes as a store of value and a hedge against inflation. Amid this shift, the foreign reserves-to-gold share ratio varies significantly among different countries.

In this line, according to data obtained by Finbold on February 28, Portugal accounts for the highest gold share ratio to total foreign reserves among the selected countries at 69.18%, followed by the United States at 67.08% in 2022. Germany’s ratio ranks third at 66.53%, while Uzbekistan is fourth at 64.51%. Italy occupies the fifth spot at 63.63%.

Other countries making it to the top ten list include France (58.59%), Kazakhstan (58.44%), Netherlands (56.35%), Lebanon (51.28%), and Austria (49.34%).

Elsewhere, among the selected countries, China occupies the 20th position with a ratio of 3.55%. Overall, the top 20 countries are dominated by European nations, accounting for over 50%.

China accumulating more gold

The research highlighted the intrigues behind China’s share of gold reserves. According to the research report:

“China’s gold holdings are still relatively low compared to other major economies. However, the Chinese government has been steadily increasing its reserves in recent years. This is, in part, a strategy to diversify its foreign exchange reserves away from the U.S. dollar, the dominant global reserve currency.”

Looking forward, most global central banks will likely keep increasing their reserves for the precious metal, aiming to benefit from the asset’s historical values.

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