- The BRICS Gold settlement system enables trade backed by physical gold, bypassing the US dollar.
- Eleven countries currently participate, with 22 more applying, supported by vaults and payment networks.
- Gold prices hit a record $4,379 per ounce in October 2025 amid rising gold purchases by member nations.
- The New Development Bank plans a gold-backed BRICS currency called the Unit, targeting full operation by 2030.
- BRICS controls significant global resources, including 70% of rare-earth metals and 40% of oil reserves, influencing currency and trade systems.
The BRICS nations have developed a gold settlement system allowing member countries to conduct international trade backed by physical gold instead of US dollars. Currently, eleven countries are part of the system, with 22 others in various application stages. This infrastructure includes vaults and payment networks to support BRICS-dollar-free commerce, emphasizing voluntary participation and trust based on gold.
China’s Shanghai Gold Exchange International has been central to this development. Russia began piloting the system in 2017 by accepting yuan for oil payments convertible into gold verified via blockchain technology in Shanghai. The system now extends to other partners, including Saudi Arabia.
The network includes vaults in Saudi Arabia, Singapore, and Malaysia, allowing member states to store and pledge gold, enhancing cross-border credit lines. Trade between Russia and China settles over 90% in their national currencies, demonstrating the system’s scale. The BRICS group now includes countries such as Egypt, Ethiopia, Iran, and the United Arab Emirates.
Central banks within BRICS have purchased over 2,100 tonnes of gold in 2022 and 2023 combined. India’s Reserve Bank added 73 tonnes in 2024 and repatriated 100 tonnes from the UK. Poland increased holdings by 67 tonnes in early 2025, while Kyrgyzstan’s gold reserves reached 64.4% of total reserves. Former RBI Governor Shaktikanta Das said, “…we are building up gold reserves, the data is released from time to time…”
Gold reached an all-time high price of $4,379.13 on October 17, 2025, climbing 56.86% year-to-date. Russian Finance Minister Anton Siluanov confirmed that the New Development Bank has formalized a multi-billion-dollar cross-border settlement hub to support gold-backed BRICS trade. The yuan’s share of global Forex trading rose to 8.5% by September 2025.
Russian Deputy Foreign Minister Sergey Ryabkov stated the gold settlement system aims to be operational by 2030, with pilot projects possible before the end of 2026. Andy Schectman, president of Miles Franklin, explained that the bank plans to introduce a new settlement currency called the Unit, backed 40% by gold and 60% by BRICS local currencies. This gold will be held as kilo bars, redeemable by participating entities.
The expanded BRICS group now represents 47.9% of the global population and controls 70% of rare-earth reserves, 40% of global oil production, and over 12,000 tonnes of gold. Key initiatives include bilateral currency settlements, a BRICS Cross-border Payments Initiative as an alternative to SWIFT, and the BRICS Grain Exchange for commodity trading. The US dollar’s share of global reserves has declined from 73% in 2001 to 54%, with expectations of further reduction as BRICS strengthens its gold-backed and dollar-free trade infrastructure.
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