Invesco's survey found 61% of central banks say US debt levels negatively affect
the dollar's long-term role as a reserve asset, compared with 20% in 2024.
Despite a 3% YTD dollar rally linked to the Iran conflict, survey analysts say
US policy uncertainty and high debt argue for a longer-term dollar downside. 29%
of users expect the dollar's reserve status to weaken within five years,
up from 12% in 2022. Several institutions report re-evaluating reliance on US
custodians, counterparts and clearing infrastructure amid geopolitical
tensions. One-third of users plan to increase gold holdings for
diversification.
