Major sovereign wealth funds are turning to energy and are worried about the future of the dollar.

Sovereign wealth investors, who collectively manage nearly $29 trillion in assets, are increasing their investments in the energy sector while expressing growing concerns about the dollar's position as the world's primary reserve currency. This is according to a study published by the asset management firm Invesco.

According to this survey, 61% of the central banks questioned believe that the level of US debt poses a risk to the dollar's long-term role. This perception is fueling broader discussions about diversifying the reserves and investments of public institutions worldwide.

Gold appears to be one of the main alternatives being considered. Approximately one-third of respondents plan to increase their holdings of the precious metal in order to reduce their dependence on the dollar and better diversify risk within their portfolios.

The study also indicates that some investors are taking a closer look at their exposure to US financial infrastructure. In particular, they are assessing their reliance on US-based custodians, counterparties, and clearing systems, amid heightened geopolitical and financial concerns.

At the same time, the energy sector is attracting renewed interest from sovereign wealth funds. Investments in energy infrastructure, natural resources, and projects related to the energy transition are increasingly seen as strategic assets capable of offering long-term returns and some protection against global economic uncertainties.

This development does not signify an immediate abandonment of the dollar, which remains the primary international reserve currency. However, it reflects a growing desire among major public investors to diversify their investments and prepare for a global financial environment perceived as more fragmented and potentially less US-centric.