BRICS aims to launch a new currency that will be backed by gold as a counter to the US dollar. A common currency will make the alliance usher into a new financial era and become a cornerstone for further developments. The upcoming summit in 2024 will shed more light on the policies that are aimed to topple the US dollar.
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Reports suggest that BRICS could back their new currency with gold and not the US dollar or other local currencies. The alliance aims to get back to the gold standard and maintain a multipolar world for all trade and transactions. The World Gold Council reported that BRICS has been the largest buyer of gold since 2022 and is accumulating tonnes worth of the precious metal in the reserves.
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BRICS: A New Gold-Backed Currency Could Be Announced in 2024 Summit?
The formation of a new BRICS currency backed by gold will take the financial world by storm, said economist Thorsten Polleit. “A new international transaction unit, backed by gold, sounds like good money – and it could be, first and foremost, a major challenge to the US dollar’s hegemony,” he said.
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A gold-backed BRICS currency could be a game-changer in the financial world and could put the US dollar on the back foot. Developing countries could begin to distance themselves away from the US dollar and embrace the new currency for cross-border transactions.
The development will only strengthen BRICS and other emerging economies leaving the US dollar distantly behind. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
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Coming back to the question about the BRICS gold-backed currency, the upcoming summit in October will provide all the details. Also, the 16th summit in the Kazan region of Russia holds the key to the answers to the million-dollar question.
