BRICS nations buying gold to topple US dollar in transactions
The BRICS countries, including Brazil, Russia, India, China and South Africa, are buying massive amounts of gold to topple the dominance of the US dollar in transactions on the global stage.
Throughout 2023, the BRICS alliance has acquired gold at a remarkable rate, watcher.guru.com reported. The central banks throughout the alliance have sought to stock up on the metal, with many assuming that it was for an impending BRICS currency announcement. However, Forbes has recently reported that the BRICS bloc is using gold to help shift global demand away from the US dollar.
Indeed, the alliance is not relying on gold to be a currency used in place of the dollar.
Yet, they are acquiring the asset so that it could be used “as the basis for international exchange,” similar to the dollar. Subsequently, denominating in this asset is an effective way to maintain its local currency strength but redirect global activity away from US dollar reliance.
The developing nations want to rely less on the US dollar by creating a new currency to settle international trade, the report added.