BRICS Turns to Gold: A Push to Dethrone the US Dollar

• Gold Acquisition by BRICS Alliance Intensifies in 2023
• Gold as the Basis for International Exchange
• BRICS Bloc's Gold Acquisitions: A Key Strategy in De-Dollarization
• The Role of Gold in Global Demand Shift
• How Gold Replaces the US Dollar
• Local Currency Bonds and De-Dollarization
• Global Gold Acquisitions: A Business Opportunity
• Shifting the Global Perspective

Gold Acquisition by BRICS Alliance Intensifies in 2023

In 2023, it has been observed that the BRICS alliance has significantly increased their gold acquisition. Central Banks in these countries have shown a strong inclination towards stocking up on this precious metal. This has led to speculation about the impending announcement of a new BRICS currency. However, a recent report from Forbes paints a different picture. Rather than using gold as an alternative currency, the BRICS bloc is leveraging gold to shift global demand away from the US dollar.

Gold as the Basis for International Exchange

The BRICS nations are not intending to replace the US dollar with gold as the main currency. Instead, they are procuring this asset for use as the basis for international exchanges. This move is similar to the role the dollar plays in the current global economy. Hence, by denominating transactions in this asset, BRICS can maintain the strength of their local currencies while mitigating global reliance on the US dollar.

BRICS Bloc's Gold Acquisitions: A Key Strategy in De-Dollarization

In the previous year, the BRICS alliance has made substantial progress in their de-dollarization plans. The alliance is dedicated to shifting the global finance paradigm away from the US dollar. To achieve this, they have promoted local currencies and have been developing their own trade currency. Yet, as highlighted in a Forbes report, one overlooked asset in this endeavor is gold.

The Role of Gold in Global Demand Shift

Forbes points out that the BRICS alliance is utilizing gold to catalyze a shift in global demand away from the US dollar. They are not using gold as a trade currency or as the base for their local currencies. Instead, they aim to use investment vehicles that are denominated in gold. This strategy effectively replaces financial mechanisms previously denominated in the US dollar.

How Gold Replaces the US Dollar

This approach allows the BRICS alliance to shift away from the dollar without necessarily increasing the prevalence of their own currencies. They can simply denominate enough investment vehicles in a globally valued asset like gold, to substitute for the greenback.

Local Currency Bonds and De-Dollarization

Replacing the US dollar with the Ruble, yuan, or rand is considered a challenging proposition. Consequently, the search for alternative assets continues. Certain BRICS nations, such as Russia and Iran, cannot operate transactions in dollars. Other BRICS countries express concern over similar sanctions. This has propelled gold to become a potential supplement.

Global Gold Acquisitions: A Business Opportunity

Many countries worldwide are also increasing their gold reserves. The rationale behind this strategy revolves around business opportunities. Countries are securing a seat at the table to trade with the BRICS nations, according to Forbes.

Shifting the Global Perspective

The journey towards de-dollarization might not necessarily involve a single nation's currency. If the BRICS nations continue their record-breaking gold acquisition, they could potentially alter global perceptions. Furthermore, this strategy might even reshape the global financial landscape, creating conditions reminiscent of the pre-1945 era.

Edited by Jonathan Stoker