Gold as a Strategic Reserve in BRICS’ De-Dollarisation Push
The BRICS nations—Brazil, Russia, India, China, and South Africa—are increasingly turning toward gold as a strategic reserve asset in their efforts to reduce dependence on the US dollar. This move reflects a broader shift in the global financial system, where emerging economies are seeking greater monetary sovereignty and protection from external economic shocks.
Gold has always been valued as a neutral and trust-based asset. Unlike fiat currencies, it is not controlled by any single country or central bank. For BRICS countries, this makes gold an attractive alternative to the dollar, especially in a world where sanctions, trade restrictions, and currency volatility have become powerful geopolitical tools.
In recent years, several BRICS central banks have significantly increased their gold reserves. This accumulation is not just symbolic; it serves practical purposes. Gold helps diversify reserves, reduces exposure to dollar-denominated assets, and strengthens confidence in national currencies. Some discussions within BRICS also point toward the possibility of gold-backed or commodity-linked settlement mechanisms for cross-border trade.
The de-dollarisation push does not mean the immediate end of the US dollar’s dominance. Instead, it signals a gradual transition toward a multipolar financial system, where multiple currencies and assets—including gold—play a larger role. For trade among BRICS nations, using gold or gold-linked instruments could lower exchange risks and reduce reliance on Western financial infrastructure.
In essence, gold is becoming more than just a store of value for BRICS—it is a strategic tool. As global economic power continues to shift, gold’s role in international finance may expand, reinforcing its status as a timeless anchor in an evolving monetary order.
