The growingly popular BRICS alliance has continued to grow in numbers and support over the past year. In August 2023, the alliance agreed to expand its total members in 2024. Furthermore, the bloc announced the development of a new currency. This BRICS currency will be driven to fully ditch the US dollar in trade and usher in a new era.
The currency is expected to be backed by gold, a precious metal sought after by BRICS nations since the announcement. With gold on the rise, the precious metal is bullish and will be a battlefield for the West’s US Dollar and BRICS moving forward.
Russia has assumed the main leadership of the bloc alongside China. Since it invaded Ukraine, the country has sought alternative financial mechanisms. In turn, Russia and BRICS are looking to the growing momentum of gold to back their new currency. However, as the US dollar continues a slow decline, more countries including the US itself are also turning to gold as a global reserve. The precious metal is becoming evermore so precious, and will likely be a setting for a standoff between BRICS and the US dollar for some time.
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BRICS Inspiring Other Nations to Push Gold, Ditch US Dollar
In addition, many experts see Russia inspiring other countries to pursue gold-backed trade and currencies to abandon the US dollar. Countries in Africa, including Zimbabwe, have an interest in BRICS’ de-dollarization initiative and, thus also an interest in gold.
With further development to come, African nations are hoping to reach the levels of economic growth as their Western and northern counterparts and may see a gold-backed currency as the next step to reach those heights. Hence why interest in the bloc around the continent has grown significantly.
In a world where both BRICS and GOLD are bullish, the US dollar is at risk. As the bloc continues to fight the greenback, the precious metal as an asset