The BRICS members are accumulating massive amounts of gold in their reserves to challenge the U.S. dollar. The Central Banks from Russia, India, and China are on a gold buying spree in FY 22-23 and FY 23-24. The three countries are among the top buyers of gold this year and they are steadily purchasing the precious metal. Among the BRICS members, China is leading in gold accumulation and is the top buyer of the metal in June 2023.
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China is purchasing tonnes of gold ahead of the BRICS summit and speculations are rife that the alliance could back their yet-to-be-decided currency with the precious metal. However, the development could be confirmed only after the BRICS summit takes place in Johannesburg on August 22 to 24.
BRICS: China Becomes The Biggest Buyer of Gold Ahead of Summit
A month before the summit, China added 21 tonnes of gold to its reserves in June, according to statistics from the World Gold Council. The People’s Bank of China (PBOC) added a total of 103 tonnes of gold to its reserves in 2023.
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China is steadily maintaining its buying spree and it is now the top purchaser of gold in FY 2023-24. On the other hand, India and Russia are also accumulating gold in their Central Bank reserves.
In addition, Central Banks from around the world purchased 55 tonnes of gold in 2023. While China bought 21 tonnes, The National Bank of Poland added 14 tonnes of gold to its reserves. The Central Bank of Turkey added 11 tonnes to its official reserves reaching a total of 440 tonnes.
Turkey has expressed its interest to join the BRICS alliance and trading in native currencies for cross-border transactions. BRICS members and countries that want to join the alliance are accumulating gold at a rapid pace.
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