A UBS survey shows that most foreign exchange reserve managers are concerned about the independence of the Federal Reserve and the deteriorating rule of law in the US.

Nearly two-thirds of global foreign exchange reserve managers fear for the independence of the US Federal Reserve and almost half believe the rule of law in the US could affect asset allocations. The survey of a sample of 40 central banks highlights uncertainty about the dollar as a safe haven amid trade and geopolitical tensions. Although the dollar remains dominant, gold and the yuan are gaining in popularity and reserve managers are reconsidering their diversification strategies.