Central Banks Identify Geopolitical Tensions as Top Global Risk, Survey Reveals
A recent survey conducted by Central Banking Publications has revealed that geopolitical tensions are now considered the top global risk by central banks managing over $9.5 trillion in reserves. This marks a significant shift from last year when U.S. trade protection was the primary concern. The survey, which included responses from nearly 100 institutions, was conducted between January and March, prior to the February 28 strikes on Iran. The survey highlights a dramatic increase in concern over geopolitical issues, with 70% of banks ranking it as their top risk, up from 35% in 2024. Additionally, the survey indicates a decline in confidence in U.S. bonds, with only a third of respondents expecting them to outperform those of other major economies. Gold remains a favored asset amidst geopolitical uncertainty, with nearly three-quarters of central banks holding it in their reserves. 
