The popular and growing BRICS alliance has continued to expand in membership and support over the past year. As of August 2023, the alliance agreed to expand the total number of members for 2024 and announced the development of a new currency, backed by gold, with the aim of completely abandoning the US dollar in trade and opening a new era of financial exchanges.
- BRICS and the new gold-backed currency: The BRICS alliance is moving towards using a new gold-backed currency, highlighting the trend of several countries wanting to reduce their dependence on the US dollar.
- Role of Russia and China in Leadership: After the invasion of Ukraine, Russia took a leading role within the bloc together with China, seeking financial alternatives and turning to gold to support the new currency.
- Global implications of abandoning the dollar: Interest in a financial system less dependent on the dollar is growing. Countries like Zimbabwe in Africa are considering joining the BRICS initiative, shifting focus towards gold as an international reserve.
With the growing strategic importance of gold and optimism around the BRICS alliance, the US dollar’s position is at risk. As the bloc struggles against the dollar’s dominance, the precious metal emerges as a stable and universally recognized value alternative.
Russia and China, leading this new monetary challenge, are inspiring other countries to explore gold-backed trading systems and currencies, in a global context that sees the growing importance of the precious metal as an economic security asset.
The political and economic implication of this transition could reshape the international balance of power, with African countries looking with interest at the BRICS initiative as a possible driver of economic growth and currency stability.
