The way BRICS gold challenges dollar is changing global finance is pretty significant right now, especially since these countries manage nearly half the world’s gold production and continue stockpiling more. This de-dollarization strategy, which China, Russia, India, and also Brazil are pushing forward, depends on holding real gold reserves and potentially creating a BRICS common currency down the road. With about 800 metric tonnes purchased by central banks in 2025 alone—valued at something like $105 billion—and gold prices breaking records above $4,400 per ounce, the alliance is putting together an alternative money infrastructure that challenges dollar hegemony without going head-to-head.
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How BRICS Gold Challenge Dollar And De-Dollarization Strategy Shapes Power
Gold Reserves Drive Strategic Independence
The BRICS countries, along with partners like Kazakhstan, Iran, and Uzbekistan, control about half of global gold production right now. Between 2022 and 2024, central banks bought over 1,000 tons of gold each year—a record that shows how gold reserves accumulation has become a key part of monetary policy. Brazil started buying again in September 2025, picking up 16 tons after a break since 2021, while Russia’s sitting on 2,336 tonnes and China has 2,298 tonnes stashed away.
Physical gold is replacing paper assets in central bank playbooks across BRICS nations at the time of writing. Together, they hold more than 6,000 tonnes—that’s around 20-21% of all central bank gold worldwide—which gives them leverage to cut dollar ties and boost their financial independence. Analysts say it’s not just the quantity that matters, but also the trust and long-term influence these reserves bring.
Frank Giustra, a prominent mining investor, had this to say at the Precious Metals Summit:
“We’re now, believe it or not, in the era of hard money. If you own paper gold, you do not own gold. When the crunch comes, it will not be there.”
BRICS Common Currency Tests Dollar Alternative
On October 31, the bloc launched a prototype currency called “Unit,” backed by 40% physical gold and 60% national currencies of member states. Each Unit was pegged to 1 gram of gold, establishing a tangible benchmark for inter-bloc trade settlements outside dollar systems. This marks a concrete step toward implementing a BRICS common currency that many analysts predict could launch fully in 2026. Right now, the BRICS gold challenge dollar efforts through the Unit represent one of the most ambitious attempts to create an alternative to the existing monetary order.
Russia and China now settle approximately 90% of bilateral trade in local currencies, bypassing dollar transactions entirely. Russian President Vladimir Putin confirmed at recent forums that Russia’s national currency settlements with other BRICS countries reached 90% in 2024, demonstrating the de-dollarization strategy is already being implemented at scale. At the 2024 BRICS Summit, Putin stated:
“The dollar is being used as a weapon. We then have to look for other alternatives, which is happening.”
Putin also emphasized caution during his December 2025 India visit, stating:
“There is no need for haste. And if there is no hurry, then you will avoid many grave mistakes.”
Russian Foreign Minister Sergey Lavrov clarified that the BRICS gold challenge dollar approach doesn’t aim to replace the dollar outright but rather to settle trades using national currencies backed by gold reserves. This multi-currency framework preserves monetary sovereignty while enabling trade across BRICS economies without dollar exposure.
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Building Financial Infrastructure Beyond dollar hegemony
The gold reserves accumulation strategy supports broader infrastructure development aimed at circumventing Western financial systems. BRICS nations are developing payment platforms, including the mBridge digital currency pilot launched by China, Hong Kong, Thailand, the UAE, and Saudi Arabia, which enables settlements in local currencies rather than dollars. Along with this, the Shanghai Futures Exchange introduced T+0 settlement in March 2024, offering instant trades that challenge paper-based markets and establish direct gold trading hubs independent of Western exchanges.
The World Gold Council stated:
“Gold’s performance during times of crisis, portfolio diversification and inflation hedging are some key themes driving plans to accumulate more gold over the coming year.”
Gold prices have actually surged over 40% in 2025, outperforming major assets and also reaching new highs as BRICS buying pressure tightened supply at the time of writing. Various major financial institutions, including Goldman Sachs, have architected forecasts demonstrating gold could approach $5,000 per ounce if just 1% of privately-held U.S. Treasuries were allocated to the metal. This price movement reflects how the BRICS gold challenge dollar initiative is already influencing global markets, even before a BRICS common currency is fully operational.