A survey of central banks by Central Banking Publications has found that concerns about geopolitical tensions have surged this year and ?are now viewed as the top global risk. The great majority of responses to the survey were received before the February 28 strikes on Iran; January had witnessed the row between the U.S. and Denmark over Greenland. Almost 70% ?of central banks said geopolitics was their top risk – a sharp increase from 35% of banks that cited geopolitics as the leading concern in 2024. The survey also suggested trust in the dollar is being tested. “Over the next five years, global FX reserves managers will rigorously assess whether the U.S. dollar’s role as the dominant global ?reserve currency continues, amid rising global fragmentation,” said one Asia-Pacific central banker.
