BRICS Ditches Dollar for Gold, Controls Half Global Production

BRICS shifts from U.S. dollar to gold-backed “Unit” currency, boosting global de-dollarization and economic independence

  • The BRICS alliance, controlling about 50% of global Gold production, is shifting away from the U.S. dollar toward gold reserves.
  • Russia and China lead gold accumulation, producing 340 and 380 tonnes respectively in 2024.
  • Central banks globally purchased over 1,000 tonnes of gold annually from 2022 to 2024, marking the longest buying streak in recent history.
  • The bloc has introduced a BRICS gold-backed currency called the “Unit,” combining 40% physical gold and 60% national currencies.
  • This strategic move supports de-dollarization and aims to establish independent pricing and settlement systems among member countries.

The BRICS alliance, which includes major economies such as China, Russia, Brazil, South Africa, Kazakhstan, Iran, and Uzbekistan, is actively reducing reliance on the U.S. dollar by increasing gold reserves. Collectively, these countries account for approximately 50% of the world’s gold production as of 2024, with China producing around 380 tonnes and Russia about 340 tonnes this year. This shift reflects a strategic response to concerns about dollar reliability and international financial risks.

- Advertisement -

Between 2022 and 2024, central banks worldwide bought over 1,000 tonnes of gold each year, the longest continuous buying streak on record, according to World Gold Council data. The BRICS members’ gold reserves now total more than 6,000 tonnes, with Russia holding 2,336 tonnes, China at 2,298 tonnes, and India at 880 tonnes. Recently, Brazil added 16 tonnes in September 2025, marking its first purchase since 2021, bringing its reserves to 145 tonnes.

The alliance has launched a pilot program for a gold-backed currency called the “Unit.” This currency consists of 40% physical gold and 60% national currencies from BRICS members. One Unit equals one gram of gold, and 100 Units were issued on October 31, 2025. This initiative aims to create an independent pricing platform and settlement system to reduce reliance on the dollar and avoid sanctions risks.

According to economics expert Yevgeny Biryukov, “For BRICS countries, gold is a tool for protection against sanctions risks, a response to the unreliability of traditional partners, and a real asset with a thousand-year history of recognition.” Moreover, Russia and China now conduct nearly all bilateral trade in their local currencies, the yuan and ruble, reflecting increased de-dollarization since Western sanctions on Russia began in 2022.

Gold prices have risen above $4,000 per ounce amid these developments, yet purchases continue steadily. The BRICS alliance is establishing a joint gold pool and shared infrastructure between countries like Russia, China, the UAE, and South Africa to stabilize markets and maintain control over the physical supply. This shift challenges the current dollar-dominated financial system and marks a significant change in global economic power distribution.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

FedEx Joins Hedera Council to Boost Digital Supply Chains

FedEx has joined the Hedera Council, a group governing a distributed ledger network, and...

New Stealthy VoidLink Malware Targets Finance Sector

A new cyber-espionage actor, UAT-9921, is using the advanced VoidLink malware framework to target...

Bitcoin at Critical Undervalued Level as MVRV Drops to 1.2

Data from CryptoQuant shows Bitcoin's MVRV ratio is at 1.2, nearing undervalued territory below...

Crypto Sanctions Surge, Compliance Must Adapt

Recent record-breaking sanctions enforcements show a dramatic escalation in cryptocurrency-related regulatory actions.Legacy, single-asset screening...

FedEx Joins Hedera Council to Improve Global Logistics

FedEx has joined the governing Hedera Council, becoming its latest member alongside leading global...

Must Read

7 Best Crypto To Invest In This Year

Investing in cryptocurrencies has become a popular way for people to diversify their investment portfolio and make potential profits.However, with so many cryptocurrencies available...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!