BRICS nations—Brazil, Russia, India, China and South Africa—are increasingly reducing their reliance on the US dollar and strengthening their focus on gold as part of a broader reserve diversification strategy. While BRICS countries officially hold around 20% of global gold reserves, they, along with closely aligned partner nations, now account for nearly half of global gold production.
Russia and China are leading this shift. In 2024, China produced 380 tonnes of gold, while Russia added 340 tonnes. Brazil also returned to the gold market in September 2025, purchasing 16 tonnes—its first gold acquisition since 2021.
BRICS members are pursuing a dual strategy of increasing domestic gold production, reducing gold sales, and simultaneously purchasing gold from international markets. Between 2020 and 2024, central banks of BRICS nations accounted for over 50% of global gold purchases, highlighting a clear move away from dollar-heavy reserves.
The growing accumulation of gold by BRICS countries is being viewed as a signal of rising stress within the US dollar-dominated global financial system. While the dollar continues to remain the world’s primary reserve currency, recent developments suggest that its dominance is increasingly being questioned rather than directly challenged.
BRICS economies currently account for nearly 30% of global trade, lending global significance to their monetary and reserve management decisions. Reducing dependence on Western financial infrastructure—particularly the US dollar—has been a long-standing objective of the bloc.
The shift in reserve strategy gained momentum following the Russia–Ukraine conflict, when Western nations froze a substantial portion of Russia’s foreign exchange reserves. This episode reshaped how countries perceive reserve safety, underlining the geopolitical risks associated with holding dollar-denominated assets or reserves stored in foreign jurisdictions. Since then, central banks have increasingly prioritised assets that are politically neutral, physically held, and resistant to external control.
As a result, gold’s share in BRICS foreign exchange reserves has steadily increased, while exposure to dollar assets has moderated. This trend has coincided with a sustained rally in gold prices, driven not only by inflation hedging but also by strong official-sector demand. Market movements suggest that gold is gradually reclaiming its role as a trusted reserve asset in an increasingly fragmented global financial system.
Beyond reserve accumulation, BRICS nations are also reducing dollar dependence in trade. Around one-third of intra-BRICS trade is now settled in local currencies through bilateral arrangements such as India–Russia and China–Brazil trade agreements. These steps are aimed at lowering transaction costs, reducing exposure to sanctions, and limiting reliance on dollar liquidity cycles.
BRICS influence over global gold production has also increased, with member and aligned countries accounting for close to half of new global supply. However, this does not indicate immediate dominance over the global monetary system. The recent acceleration in gold purchases is largely being seen as a risk-management and diversification exercise rather than a move toward a gold-backed currency.
Structural challenges remain, including the entrenched petrodollar system, shifting global trade dynamics and rising protectionism. Broader strategic efforts—such as reduced dependence on fossil fuels and changes in global energy and commodity pricing—are also shaping the long-term trajectory of global financial realignments.
Overall, BRICS’ growing gold accumulation does not signal the end of the US dollar’s global role, but it does mark a credible shift toward a more diversified and multipolar financial system—one in which gold is steadily regaining importance as an anchor of monetary trust.
