BRICS Countries Challenge the US Dollar with Surge in Gold Ownership
A collection of countries with aligned economies is purchasing significant amounts of gold in preparation for reducing their dependence on the US dollar.
BRICS, a group consisting of five major emerging economies, has been steadily increasing its ownership of gold, and this trend is predicted to persist in the coming years.
According to Frank Holmes, the CEO and Chief Investment Officer of US Global Investors, this movement, particularly China’s substantial gold accumulation, implies that the global economy is undergoing a split.
BRICS countries have surpassed the G7 nations in their share of the global economy on a purchasing parity basis, marking the first time in history.
As per the World Gold Council, China has augmented its reserves by 102 tons of gold in the current year.
Analysts suggest that gold will be pivotal in establishing a novel currency independent of the US dollar, which has served as the primary global foreign reserve currency for approximately a century.
Allegedly, the BRICS countries are in the initial phases of creating a novel payment system and currency to break free from the global reliance on the US dollar.
Nonetheless, certain critics, including the billionaire Chamath Palihapitiya, contend that China’s attempts to reduce dollar usage would be futile if they keep the yuan tied to the dollar.