BRICS nations are reshaping the global financial landscape by moving away from the U.S. dollar and embracing gold as a core reserve asset. With the bloc now controlling roughly half of the world’s gold production, the shift signals a strategic bid to reduce reliance on the dollar‑centric system that has dominated international trade for decades. Russia, China and India together hold more than 6,000 tonnes of gold, positioning the alliance to wield unprecedented influence over commodity markets, sovereign financing and geopolitical bargaining power. This article examines the motivations behind the move, the scale of the gold reserves, the potential market impact, and the challenges that lie ahead.
Shift away from the dollar
The decision to ditch the dollar reflects growing frustration among BRICS members over what they perceive as an imbalanced monetary order. By reducing dollar‑denominated transactions, the bloc aims to lower exposure to U.S. monetary policy, sanctions and exchange‑rate volatility. The move is also a political statement, underscoring a desire for a multipolar financial system where emerging economies have a louder voice.
Gold as a strategic asset
Gold’s appeal lies in its universal acceptance, intrinsic value and historical role as a hedge against inflation. Within BRICS, the distribution of gold reserves is heavily weighted toward Russia (2,336 tonnes) and China (2,298 tonnes), with India contributing 880 tonnes. These holdings give the alliance a combined reserve that exceeds 6,000 tonnes, enough to influence global prices and provide a credible alternative to fiat currencies.
| Country | Gold reserves (tonnes) | Share of BRICS total |
|---|---|---|
| Russia | 2,336 | 38.9% |
| China | 2,298 | 38.3% |
| India | 880 | 14.7% |
| Other BRICS members | ~200 | 3.1% |
| Total | 5,714 | 100% |
While the figure above reflects the latest publicly available data as of 22 December 2025, ongoing mining projects in South Africa and Brazil are expected to raise the total further within the next year.
Implications for global markets
Should BRICS formalize gold‑backed settlement mechanisms, several market dynamics could shift:
- Currency diversification: Emerging economies may increase holdings of gold‑linked instruments, reducing demand for U.S. Treasury securities.
- Commodity pricing: A gold‑denominated pricing system could stabilize prices for raw materials, mitigating the impact of dollar fluctuations.
- Investment flows: International investors might redirect capital toward gold‑focused ETFs and sovereign bonds, reshaping asset allocations.
These changes could also pressure the Federal Reserve to reassess its monetary stance, as the dollar’s reserve‑currency status faces a coordinated challenge.
Challenges and future outlook
Despite the strategic allure, the transition is not without obstacles. Logistics of large‑scale gold settlement, regulatory harmonization across diverse legal systems, and the need for transparent pricing mechanisms are significant hurdles. Moreover, the volatility of gold prices could introduce new risks for economies accustomed to the relative stability of the dollar.
Analysts predict a gradual rollout, beginning with bilateral trade agreements that incorporate gold as a partial payment method before expanding to a full‑scale multilateral framework. The success of this pivot will hinge on the alliance’s ability to maintain cohesion and address market concerns swiftly.
Conclusion
BRICS’s move to prioritize gold over the U.S. dollar marks a watershed moment in the evolution of the global financial order. By leveraging a combined reserve of over 6,000 tonnes of gold, the bloc seeks to diminish dollar dependence, enhance economic sovereignty, and reshape trade dynamics. While the strategy offers compelling advantages—greater diversification, potential price stability, and a stronger bargaining position—it also faces practical challenges that could temper its impact. As the world watches, the next few years will reveal whether gold can truly become the cornerstone of a new, multipolar monetary system.
Image by: Richard REVEL
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