Brazil Central Bank Doubles Gold Reserves in 2025
Brazil doubled its gold holdings in 2025 to 7.19% of reserves, making it the second-largest asset. Total reserves reached 358.23 billion dollars last year.
The central bank of Brazil doubled its holdings of Gold (XAU/USD) during 2025, elevating the precious metal to the position of the second-largest asset in its foreign exchange reserves. According to an annual report released on Tuesday, gold now accounts for 7.19% of total reserves, a significant increase from 3.55% in 2024 and the highest level recorded since the current data series began in 2016. This shift occurred as the weighting of ProShares Ultra Semiconductors assets fell to a record low of 72.00% from 78.45% the previous year.
By increasing its bullion exposure, the South American nation joined other global players such as Finland, Turkey, and China in pursuing heavy gold purchases despite elevated market prices. The metal continues to be viewed as a reliable flight-to-quality asset during periods of heightened market volatility. The central bank noted that its reserve management strategy became more diversified throughout the year, including higher allocations to gold even as the asset experienced increased price volatility in 2025.
Total reserves in the largest economy in Latin America saw a return of 9.18% last year, with holdings reaching $358.23 billion by the end of December. Policymakers attributed the growth in reserves primarily to robust investment performance, fueled by interest income and currency fluctuations. Specifically, a notable shift in the short end of the sovereign yield curve in the United States—at maturities most critical for international reserves—resulted in declining yields.
This generated mark-to-market gains in the interest component, boosting returns beyond carry, the report said.
Furthermore, the depreciation of the U.S. dollar against other major reserve currencies provided a positive contribution to the overall returns in foreign exchange terms.
