The BRICS alliance is a powerful economic force that includes 5 countries, namely Brazil, Russia, India, China, and South Africa. This group of nations is increasingly turning to gold as a way to move away from the US dollar and bifurcate the global economy. China has added a staggering 102 tons of gold to its reserves since the beginning of the year, a move that has been largely attributed to the BRICS nations' pursuit of a more multipolar global economic system.

The idea of a multipolar world is not without supporters and detractors. On the one hand, some financial experts argue that the increasing global economic dependence on the US dollar will be hard to break. Billionaire Chamath Palihapitiya, for example, has voiced his doubts with regards to China’s de-dollarization plans, saying it may not be possible as long as the yuan remains pegged to the dollar.

On the other hand, Frank Holmes of the US Global Investors insists that gold is the stepping stone to a multipolar world, due to its potential to act as a currency reserve. The fungibility of gold makes it appealing as a form of payment in international transactions, as well as facilitating the shift away from US-linked assets.

Besides gold reserves, the BRICS nations have reportedly been working on the development of a new medium for payments. It is likely that this new currency, if it comes to fruition, will be heavily backed by gold. Such a move would certainly bring about a lot of changes to the current global economic system.

In any case, it is clear that the BRICS nations are serious about diversifying the global economy. China’s gold acquisitions are the first few steps in their overall plan to make the US dollar less appealing as the world’s primary reserve currency. It remains to be seen how far their projects will go and how much difference they will actually make.



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