The formation of a new BRICS currency was expected to hit a nail in the U.S. dollar’s coffin. However, BRICS ambassador Anil Sooklal confirmed that the next summit in August will not discuss the creation of a new currency. This puts the U.S. dollar in safe territory as no other currency could challenge its global reserve status. However, BRICS using gold to topple the U.S. dollar’s prospects remains looming at large.
The BRICS bloc is accumulating gold at a massive pace with a motive to take on the U.S. dollar. The World Gold Council published a report highlighting that China purchased 102 tonnes of gold in 2023. On the other hand, Russia purchased 31.1 tonnes of the precious metal, while India accumulated 2.8 tonnes to its gold reserves. Though the developments look small at the global level, they could be a tipping point for the U.S. dollar.
BRICS Could Dethrone the U.S. Dollar With Gold, Predicts Expert
BRICS countries Brazil, Russia, China, and South Africa are among the largest producers of gold in the world. China produces 380 tonnes of gold per year, while Russia produces 300 tonnes. On the other hand, South Africa produces 90 tonnes of the precious metal and Brazil produces 80 tonnes. Therefore, the four BRICS countries, except India, can control gold prices through the weaponization of the precious metal.
Robert Kiyosaki, the author of the best-selling personal finance book ‘Rich Dad Poor Dad’ predicted that BRICS could weaponize gold to suffocate the U.S. dollar. Kiyosaki mentioned that BRICS will begin their de-dollarization efforts with gold first, and not through launching a new currency.
“GANG WARFARE: August 22, 2023, approximately 41 nations. Possibly even France gang up in South Africa to “de Dollarize” the world. Proposal: BRICS nations will launch “bric” their money. 1 bric = 1 oz of gold=$3,000. Bye bye USA,” he tweeted.
However, while these are only speculations, the next summit in August will shed light on the BRICS’ upcoming plans. The group of five nations is advancing to convince other countries to trade in local currencies and not the U.S. dollar.