Central banks may start favoring currencies from China, Japan and Australia as the dollar fall out of favor.
NEW YORK (CNNMoney)
The World Gold Council had some words of advice for central banks around the world: It may be time to diversify away from the U.S. dollar.
While the dollar remains the world's main reserve currency, the WGC said in a research report that its "optimal" strategy would involve, what else, but gold.
Along with the dollar and the euro, gold is one of the traditional reserve assets that central banks hold.
But the WGC said central bankers should also consider a number of alternative assets, including those priced in the currencies of Canada, Australia and China.
Central banks in emerging markets have been diversifying away from the U.S. dollar for some time, as the outlook for the currency remains uncertain. According to the International Monetary Fund, the dollar's share of total central bank reserves has decreased to 54% from 62% over the past 12 years.
