- The US dollar has fallen to a four-year low, with analysts projecting a further 4-5% decline in 2026 due to BRICS‘ parallel financial system.
- BRICS launched a pilot for a Gold-backed digital trade currency called Unit and is deploying a CBDC payment system, BRICS Pay, in 2026.
- Gold is replacing the dollar in central bank reserves, with prices surpassing $5,500 per ounce and holdings exceeding US Treasury values for the first time in nearly 30 years.
In early 2026, the BRICS alliance is accelerating construction of a parallel financial system designed to operate outside Western control. The US dollar dropped to its lowest point in four years, sliding about 3% in roughly a week.
Market analysts at ING project the dollar will fall by an additional 4-5% throughout 2026. This decline is driven by policy uncertainty and shifting global investment patterns.
The BRICS bloc has accumulated over 6,000 tons of gold, representing approximately 21% of global central bank reserves. Gold prices surpassed $5,500 per ounce in January 2026, with foreign central banks’ gold holdings exceeding their US Treasury holdings in value terms during 2025.
Economist Peter Schiff stated, “The dollar is going to collapse, the dollar is going to be replaced by Gold.” Central banks are clearly voting with their reserves by shifting toward gold.
BRICS launched a pilot for a settlement tool called the Unit in late 2025. This digital trade currency combines 40% physical gold and 60% BRICS national currencies for cross-border settlements.
The BRICS CBDC payment system, known as BRICS Pay, is scheduled for broader deployment throughout 2026. Meanwhile, India’s Reserve Bank is proposing that BRICS+ members link their central bank digital currencies.
The US dollar’s share in global reserves declined from 58.2% in 2024 to approximately 56.9% in early 2026. Russia and China now settle bilateral trade almost entirely in rubles and yuan.
According to Chris Turner, global head of financial market research at ING, “Most people would think the dollar should, could, and would weaken further this year.” The mBridge platform has processed $55 billion in payment volumes, with 95% using the digital yuan.
Market concern about the Trump administration’s handling of trade tensions has contributed to dollar weakness. Bets that the currency will experience future volatility have risen alongside the actual price declines.
At the time of writing, the consensus view among currency strategists is that the dollar has further to fall. The only real debate is about timing and magnitude rather than direction itself.
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