BRICS countries are on a gold rush and are accumulating billions worth of gold to their central bank reserves. The member nations are diversifying their reserves by adding tonnes of gold along with other local currencies. The goal is to diversify their reserves and make the US dollar less dependable in the coming future.
Also Read: 11 Countries Might Join BRICS in 2024 as ‘Associated Partners’
A recent report from the World Gold Council shows that the nine-member BRICS bloc controls over 20% of all the world’s gold reserves in 2024. The member nations have been massively buying the precious metal since 2022 after the US pressed sanctions on Russia. BRICS countries became the top buyer of gold in 2022 and 2023, and continue hoarding the metal even in 2024.
Russia leads the pack with 2,340 tons of gold and represents 8.1% of global reserves. China closely follows with 2,260 tons nearing 7.8% of all the reserves. India, Brazil, South Africa, and the UAE hold the other part of the reserves. Both Russia and China control 74% of all gold within the BRICS alliance.
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Gold Rush For the BRICS Alliance
Speculations were rife that the BRICS bloc could back their upcoming common currency with gold. The decision to launch a new currency was rumored to take place at the upcoming summit in Russia. The 16th summit will be held in the Kazan region and the nine countries will discuss policies at the table for the first time since the expansion in 2023.
Also Read: Currency: Trump Presidency Could Make the US Dollar Stronger
A new BRICS currency backed by gold is off the cards as Russian President Vladimir Putin confirmed that the bloc plans to use local currencies for trade. The alliance could rewrite trade policies where payments between member nations could be settled in local currencies. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
