Allianz CEO Says U.S. Dollar’s Reserve Status Is Being Tested Amid Shift Toward Gold

Key Takeaways:Allianz Global CEO Oliver Bäte said the U.S. dollar’s reserve currency status is “under test.”The CEO noted the firm’s growing preference for gold as global financial uncertainty rises.The comments reflect shifting sentiment among major institutions amid changing global monetary dynamics.Dollar’s Dominance Faces PressureAccording to ChainCatcher, Allianz Global CEO Pross stated that the U.S. dollar’s long-standing dominance as the world’s reserve currency is being challenged.He added that Allianz currently favors gold as a hedge against potential volatility and monetary imbalances, amid ongoing concerns over fiscal debt and geopolitical instability.Institutional Shift Toward Safe-Haven AssetsThe remarks come as central banks and institutional investors worldwide increase their gold holdings and diversify away from dollar-denominated reserves.Analysts suggest that this trend underscores a gradual rebalancing of global financial power, especially as emerging markets strengthen their domestic currencies and trade in non-dollar settlements.Market ImplicationsA decline in confidence in the dollar could have far-reaching effects — from foreign exchange markets to crypto adoption trends, as investors seek alternative stores of value like Bitcoin and gold.Market observers note that both assets tend to benefit when trust in fiat systems weakens or geopolitical risk rises.