Singapore
Source: www.channelnewsasia.com

India set to lead BRICS amid conflicting interests, global ambitions and US pressure
Together, the bloc represents about half of the world’s population and nearly 40 per cent of global economic output.

NEW DELHI: India is set to assume the chair of BRICS next year, taking the helm of an expanded bloc at a sensitive geopolitical juncture – one marked by competing interests, rising global ambitions and pressure from Washington.

India aims to underscore that its presidency will prioritise the Global South, while staying attuned to shifting developments around the world.

It will also focus on concrete outcomes for emerging economies, seeking to show that BRICS can bring together members facing common challenges even as their national interests diverge.

The task comes as the intergovernmental grouping grapples with growing prominence and scrutiny.

CHALLENGING WESTERN DOMINANCE

Originally formed by Brazil, Russia, India and China, with South Africa joining soon after, BRICS has long been viewed as an emerging diplomatic counterweight to traditional Western powers.
In recent years, it has expanded to include countries such as Egypt, Ethiopia, Iran, the United Arab Emirates and Indonesia.

Together, the bloc represents about half of the world’s population and nearly 40 per cent of global economic output.

In July, Indian Prime Minister Narendra Modi proposed reimagining BRICS as an acronym for Building Resilience and Innovation for Cooperation and Sustainability.

Analysts say high on India’s agenda could be the development of a proposed investment guarantee mechanism to tackle climate change, poverty, energy transition and infrastructure needs.

The initiative aims to create a financial structure controlled by BRICS nations rather than Western powers, operating through the BRICS-established New Development Bank (NDB).

“Countries, especially the small countries of the South, don't have to go and fill in complicated forms in Washington, but they can do it in an approachable way,” said former Indian diplomat Rajiv Dogra.
“So one of the ideas is to have some kind of an institution in addition to the New Development Bank, which takes care of guarantees of this nature.”

India also wants to replicate its 2023 G20 presidency model, under which it took multilateral meetings to around 60 cities across the country.

The idea is not only to promote these locations internationally, but also to familiarise Indians with the high-profile role New Delhi is playing on the global stage. 

WALKING A TIGHTROPE

The bigger test, however, will be balancing the bloc’s internal politics while managing pressure from outside.

India will have to keep BRICS positioned as pro-Global South, while engaging Washington.
If India succeeds in keeping the group aligned in 2026, it could shape how the Global South wields influence in an increasingly divided world.

A key variable in India’s presidency will be its relationship with China.

Ties between the two Asian giants have shown signs of thawing since 2024, but distrust remains.
Complicating matters further are Beijing’s ties with Islamabad, which New Delhi accuses of sponsoring cross-border terrorism.

But experts believe both sides could set aside their differences for the larger collective interest.
“I think it is an open secret that China's support for Pakistani policies does create complications,” said Rajiv Bhatia, distinguished fellow of the foreign policy studies programme at think-tank Gateway House.

“But within BRICS, when it comes to developing common positions, I think China essentially cooperates with the other members.”

Another headwind is the tariff regime under United States President Donald Trump, who has threatened 100 per cent duties if BRICS attempts to replace the US dollar as a reserve currency.
New Delhi is assuming the bloc’s presidency at a time when it is also trying to strike a trade deal with Washington and secure tariff concessions.

"The administration and the foreign office officers in the US are not vocal in either their criticism or their appreciation, but they acknowledge the fact that BRICS means no harm to America,” said Dogra.
“As far as Trump is concerned, he's not going to change his views. So we have to live with that.”

Canada
Source: aheadoftheherd.com


The BRICS countries are moving away from the US dollar as the currency that settles international transactions, and gold is an integral part of the new settlement mechanism.

The Unit

On Oct. 31, 2025, researchers launched a pilot to test a gold-anchored settlement “Unit” inside the 10-member BRICS+ bloc of countries, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.

This was followed by a Unit prototype launched on Dec. 8.

The four original BRICS members were Brazil, Russia, India, China and South Africa. The six additional countries were invited to become BRICS members following the 2023 BRICS Summit.
The Unit is a “digital trade currency” pilot created for settlement between BRICS economies. The initiative came from IRIAS, the International Research Institute for Advanced Systems.

Importantly, the Unit does not replace national currencies. Rather, it aims to act as a neutral settlement tool that reduces reliance on the US dollar in trade between BRICS economies.

According to CCN:

• The BRICS Unit is a gold-anchored digital trade currency designed for cross-border settlement.
• Its launch coincides with record public anxiety about dollar debasement, as shown in Google Trends data shared by Bloomberg.
• The prototype uses a 40% gold and 60% BRICS-currency basket that adjusts daily.
• The pilot signals a structural move toward de-dollarization and strengthens long-term global demand for gold.

Why are the BRICS doing this?

Regarding bullet point two, CCN says public interest in dollar debasement has reached a new peak. It cites Google Trends data shared by Bloomberg Opinion that shows an unprecedented spike in searches for the term during the last quarter of 2025.

There are several reasons why the BRICS created the Unit to trade without the dollar. Members face sanctions, high dollar borrowing costs, and volatility tied to US monetary policy.

The Unit would allow them to settle trade without using US banks; store value using gold instead of foreign currency reserves; reduce exposure to dollar liquidity shocks and build a monetary framework independent of Western systems.

Macro trends driving the initiative include US deficit spending, with heavy borrowing raising doubts about the dollar’s long-term strength; geopolitical fragmentation, with rival blocs seeking options beyond dollar-based systems; elevated inflation which is pushing capital into more stable assets; declining purchasing power, with many currencies losing value faster than wages or savings can keep up; and rising gold demand, with central banks continuing to increase their reserves.

Investing News Network adds that the BRICS want to set up a new currency due to aggressive US foreign policies, including the US placing sanctions on Russia and Iran. The two countries are reportedly working together to bring about a BRICS currency that would negate the economic impacts of such restrictions.

The BRICS want to better serve their own economic interests while reducing global dependence on the dollar and the euro, INN states.

In this sense, the horse has already left the barn.

As IDN Financials explains:
In parallel, Russia and China now settle almost all of their bilateral trade using the yuan and the rouble, while local currencies dominate transactions across the Eurasian Economic Union. This de-dollarisation process accelerated following Western sanctions on Russia after its invasion of Ukraine in February 2022. 

(As much as $250 billion worth of Russian assets have been frozen in the European Union since the U.S. and its allies prohibited transactions with Russia’s central bank and finance ministry — Reuters)

Operability

The Unit “combines hard assets with national currencies to create a settlement instrument that avoids dependence on a single economy.”

The reserve basket is composed of 40% physical gold (40 grams gold in the initial test) and 60% BRICS currencies, split into five equal weights of 12% each: real, yuan, rupee, ruble and rand.
As for how the Unit would actually operate, CCN explains that gold would stabilize valuations during periods of currency volatility, and that all deposits and daily pricing updates would run on a blockchain maintained by IRIAS.

Could the Unit move beyond a prototype?
It’s important to clarify that at this stage the Unit is only a prototype; it has not yet been adopted by BRICS central banks.

According to CCN,
The next phase of the Unit depends on whether BRICS members treat it as a research exercise or a blueprint for a shared settlement system. Expansion would require coordinated reserves, unified rules, and deeper interoperability between national payment networks. 

If the pilot succeeds, the Unit could form the first large-scale gold-linked settlement rail in the digital era, a development with long-term implications for global liquidity, foreign reserves, and the structure of international trade…

For the Unit to function as a shared settlement layer, members would need to agree on how to manage volatility, contribute reserves, and respond to stress events. These structural differences form the core challenge that will determine whether the Unit becomes a functional multilateral tool or remains a controlled research prototype. 

BRICS and gold

IDN Financials quoted Russian economist Yevgeny Biryukov, who said, “For BRICS countries, gold is a tool to protect against sanction risks, a response to the unreliability of traditional partners, and a tangible asset recognised for thousands of years.”

According to the World Gold Council, central banks bought more than 1,000 tonnes of gold per year from 2022-24, making it the longest sustained gold-buying period in modern history.

The four original BRICS nations are increasingly moving away from the US dollar by increasing their accumulation of gold. IDN Financials says the alliance now controls about 50% of global gold production through a combination of output from member states and strategic partners.

Russia and China are the main drivers of this strategy, with China in 2024 producing 380 tonnes and Russia 340 tonnes.

“This large-scale production ensures that BRICS holds significant control over the world’s physical gold supply.”

The BRICS are not only producing more gold; they are also expanding their gold reserves. According to IDN Financials,

The combined gold reserves of member states now exceed 6,000 tonnes, with Russia leading at 2,336 tonnes, followed by China with 2,298 tonnes and India with 880 tonnes. Brazil added 16 tonnes in September 2025—its first purchase since 2021—bringing its total reserves to 145.1 tonnes.
This dual strategy of high production alongside the accumulation of strategic reserves positions BRICS as both a key supplier and a major influence in the physical gold market. Between 2020 and 2024, central banks of BRICS member states purchased more than 50% of global gold, systematically reducing their reliance on dollar-denominated assets.

The Unit, says CCN, is the answer to countries facing inflation, weak currencies and rising debt. They are moving toward assets that hold real value and are using gold to support trade between BRICS nations. 

Another important point:

The Unit makes gold part of daily settlement, not just storage, thereby shifting the role of metal from a passive reserve to an active trade asset.

Additionally, the design can strengthen gold’s position in global finance based on the following elements:

• Gold becomes a tool for government-level transactions
• BRICS members need reserves to issue more Units
• Expansion means more consistent gold buying
• Gold moves through trade and not only vaults

As a result, the Unit marks a shift in how value moves across borders. While still a pilot, it brings gold back into the spotlight as more than a hedge. It becomes part of the global trade system.

The Unit and dollar debasement

The Unit is connected to concerns about dollar debasement.

While the Unit does not compete with domestic BRICS currencies, it still challenges the dominance of the dollar. That’s because any system that allows major economies to settle trade without using the dollar reduces demand for it. Lower demand erodes its purchasing power.

For decades, the US dollar has enjoyed unparalleled dominance as the world’s reserve currency. According to the US Federal Reserve, via INN, between 1999 and 2019 the buck was used in 96% of international trade invoicing in the Americas, 74% in the Asia-Pacific region and 79% in the rest of the world.

However, as of November 2025, the USD was only used in about 89% of currency exchanges and represents 56% of all foreign currency reserves held by central banks. (Read more about de-dollarization below)

The dollar has lost ground mostly to the euro and the yen. However, INN notes the dollar is still the most widely used reserve currency, followed by the euro, the yean, the pound and the yuan.

Oil trading used to be nearly 100% conducted in US dollars, but this is also changing. In 2023, a fifth of oil trades were made in non-USD currencies.

While the potential impact of a new BRICS currency on the dollar remains uncertain, INN maintains if it was to stabilize against the dollar, it could weaken the power of US sanctions, leading to a further decline in the dollar’s value.

However, the publication also cites a study by the Atlantic Council’s GeoEconomics Center released in June 2024 that shows that the US dollar is far from being dethroned as the world’s primary reserve currency. “The group’s ‘Dollar Dominance Monitor’ said the dollar continued to dominate foreign reserve holdings, trade invoicing, and currency transactions globally and its role as the primary global reserve currency was secure in the near and medium term,” Reuters reported.

De-dollarization

Donald Trump has boldly imposed a new era of US economic policy dominated by tariffs, trade wars, and threats to the sovereignty of nations it has long considered allies, as the second-term president aims to rewrite the rules of international trade mostly by disregarding them as he pursues an America-first agenda.

Gold, copper and silver are the answer to global turmoil — Richard Mills

The cost to the United States of Trump’s trade war and “country takeover” rhetoric has already cost America its reputation. 

Is the US dollar and its status as the world’s most important reserve currency also about to be tossed into the rubbish bin of world history?

A de-dollarization movement that started a few years ago appears to be gathering pace. What’s going on with the dollar and if it recedes or, God forbid, collapses, what are the alternatives? 
The US dollar is the most important unit of account for international trade, the main medium of exchange for settling international transactions, and the store of value for central banks.

Because of the dollar’s position, the US can borrow money cheaply, American companies can conveniently transact business using their own currency, and when there is geopolitical tension, central banks and investors buy US Treasuries, keeping the dollar high and the United States insulated from the conflict. A government that borrows in a foreign currency can go bankrupt; not so when it borrows from abroad in its own currency i.e. through foreign purchases of US Treasury bills.
Lately though, the dollar is losing its “exorbitant privilege” and de-dollarization is being pursued by countries with agendas at odds with the US, including Russia, China and Iran.

A few years ago, China came up with a new crude oil futures contract, priced in yuan and convertible into gold. The Shanghai-based contract allows oil exporters like Russia and Iran to dodge US sanctions against them by trading oil in yuan rather than US dollars.

Russia and China have both made moves to de-dollarize and set up new platforms for banking transactions outside of SWIFT. The two nations share the same strategy of diversifying their foreign exchange reserves, encouraging more transactions in their own currencies, and reforming the global currency system through the IMF.

Most Russia-China trade is now conducted in Chinese yuan or Russian rubles, with the US dollar almost completely bypassed.

Since Trump has returned for a second term, his tariffs and trade war has accelerated the decline of the dominance of the dollar. (Geopolitical Economy)

GE says it’s not only governments that are seeking alternatives to the US dollar but also major financial institutions and investors.

The Financial Times of Britain published an analysis from the global head of FX research at Deutsche Bank, who warned, “We are witnessing a simultaneous collapse in the price of all US assets including equities, the dollar versus alternative reserve FX and the bond market. We are entering unchartered territory in the global financial system.”

Certain countries are diversifying away from the dollar, buying gold and other reserve currencies like the euro instead, or conducting trade in one another’s currencies, like yuan and rubles.

JP Morgan points to two scenarios that could erode the dollar’s status. The first includes adverse events that undermine the perceived safety and stability of the greenback. “Bad actors” like Donald Trump seem to fit this description perfectly. The second factor involves positive developments outside the US that boost the credibility of alternative currencies — economic and political reforms in China, for example.

The influential bank notes that signs of de-dollarization are evident in the commodities space, where energy transactions are increasingly priced in non-US dollar currencies. India, China and Turkey are all either using or seeking alternatives to the greenback, while emerging market central banks are increasing their gold holdings in a bid to diversify away from a USD-centric financial system.
Watcher.Guru’s De-Dollarization Tracker identifies 55 countries that are now using non-dollar currencies to conduct international transactions.

As mentioned above, new payments systems are facilitating cross-border transactions without the involvement of US banks, which could undermine the dollar’s clout.

Finally, the US dollar’s share of foreign-exchange reserves has decreased, mostly in emerging markets.

According to IMF data, at the end of 2024, the dollar accounted for 58% of global foreign exchange reserves, while 10 years earlier that share was 65%.

Equally, the share of the US Treasury market owned by foreigners has also fallen sharply, from 50% in 2014 to around a third today. 

At $38 trillion and counting, interest payments on the debt now surpass the entire US defense budget. Many countries are questioning the fiscal strength of the US economy and whether holding Treasuries is worth hitching their wagon to an economy that is so deep in the red.

Along with the Unit initiative, there have been calls to use the IMF’s Special Drawing Rights as a global reserve currency. SDR is based on five currencies: the euro, pound sterling, renminbi, USD and yen. Proponents argue it would be more stable than one national currency.

Still, many experts agree that the dollar will not be overtaken by another currency anytime soon. More likely is a future in which it slowly comes to share influence with other currencies.

Conclusion

The Unit would allow the 10-member BRICS alliance to conduct trade amongst themselves, while having a gold and BRICS currency-backed payment basket to settle transactions.

It is emerging as the most viable options for breaking the US dollar’s chokehold on global trade and investment.

The Jerusalem Post points out that the Unit is non-redeemable; holders cannot convert Unit into gold or fiat currencies. “Gold anchors valuation confidence without introducing redemption risk.”
It’s also important to note that the Unit is neither a central bank digital currency (CBDC) nor a cryptocurrency stablecoin. Unlike a CBDC, the Unit is not issued by the state or used for domestic payments. And unlike a stablecoin, it is not designed for retail circulation or reserve convertibility.
Rather, the Unit most closely resembles the bancor, an invention of economist John Maynard Keynes that was a non-redeemable, basket-oriented settlement unit designed specifically for international clearing.

But they are different. As the Jurasalem Post column says, “Bancor was ledger theory; UNIT is ledger execution.”

Richard (Rick) Mills
aheadoftheherd.com

Australia
Source: discoveryalert.com.au

BRICS Gold-Backed Currency: Revolutionary Trade Settlement System for 2025

Understanding the Evolution of International Trade Settlement Systems

The global financial architecture faces unprecedented challenges as traditional monetary frameworks confront structural pressures from sanctions regimes, currency volatility, and rising geopolitical fragmentation. Central banks worldwide have systematically accumulated over 1,000 tonnes of gold annually between 2022-2024, marking the longest sustained precious metals acquisition period in modern financial history. This institutional behavior signals deeper shifts in reserve management strategies as economies seek alternatives to dollar-dependent settlement infrastructure, particularly as the BRICS gold-backed currency emerges as a viable alternative.

The emergence of commodity-anchored digital settlement mechanisms represents a fundamental departure from conventional monetary theory. Unlike previous academic proposals, these systems combine physical asset backing with distributed ledger technology to create operational frameworks for international trade clearing. The intersection of precious metals monetisation and digital infrastructure suggests potential transformation of cross-border payment architecture.

How Alternative Settlement Mechanisms Address Structural Economic Pressures

Contemporary geopolitical tensions have accelerated institutional interest in settlement systems independent of traditional banking corridors. The freezing of approximately $250 billion in Russian assets within European Union jurisdictions demonstrates the vulnerability of conventional reserve structures to political interference. This precedent has motivated economies to explore settlement mechanisms that reduce exposure to external monetary policy decisions, particularly as gold market performance 2025 shows strong upward momentum.

Currency invoicing patterns reveal systematic shifts away from dollar dominance across multiple sectors. Historical data indicates the dollar's share of international trade invoicing declined from 96% during 1999-2019 to approximately 89% as of November 2025. Oil trading, previously conducted almost exclusively in dollars, now sees roughly 20% of transactions settled in alternative currencies as of 2023.

Monetary Sovereignty and Reserve Diversification

Foreign exchange reserve composition has undergone significant transformation over the past decade. According to IMF data, the dollar's share of global foreign exchange reserves decreased from 65% ten years prior to 58% at the end of 2024. This diversification reflects institutional concerns about concentration risk in single-currency reserve portfolios, particularly given rising concerns about US inflation and debt.

Key drivers of reserve diversification include:
• Sanctions vulnerability reduction for geopolitically isolated economies
• Interest rate transmission effects from Federal Reserve policy decisions
• Currency volatility mitigation through multi-asset exposure
• Fiscal sustainability concerns regarding US debt servicing capacity

The United States currently carries approximately $38 trillion in national debt, with interest payments now exceeding the entire defense budget. This fiscal trajectory raises questions about long-term dollar stability and motivates central banks to seek alternative reserve assets.

Bilateral Trade Currency Agreements

Russia and China have implemented comprehensive de-dollarisation in bilateral trade, with transactions now conducted almost entirely in yuan and rubles. This arrangement accelerated following Western sanctions imposed after Russia's invasion of Ukraine in February 2022. Similar currency arrangements have emerged across the Eurasian Economic Union, where local currencies dominate transaction settlement.

Alternative payment infrastructure development has progressed beyond bilateral agreements. Both Russia and China have established platforms for banking transactions outside the SWIFT network, implementing parallel systems for international fund transfers. These developments demonstrate the technical feasibility of alternative settlement infrastructure at scale.

Technical Architecture of Gold-Anchored Digital Settlement Systems

The BRICS gold-backed currency initiative represents a hybrid approach combining commodity backing with digital infrastructure. Launched as a pilot on October 31, 2025, and followed by a prototype on December 8, 2025, the system employs a dual-component structure designed to balance stability with regional integration. This development represents a significant milestone in creating gold-backed digital systems for international trade.

Table: BRICS Unit Structural Composition
Operational Mechanisms and Daily Rebalancing

The system employs automated daily rebalancing of currency components to manage volatility whilst maintaining the 40% gold anchor. Initial testing utilises 40 grams of physical gold per unit, providing tangible asset backing that functions independently of fiat currency fluctuations. Gold serves as a countercyclical stabiliser during periods of currency volatility across member economies.
Distributed ledger technology maintained by the International Research Institute for Advanced Systems (IRIAS) handles transaction verification and daily pricing updates. This blockchain infrastructure enables real-time settlement verification whilst maintaining operational independence from traditional correspondent banking networks.

Non-Redeemable Structure and Redemption Risk Mitigation

A critical design feature distinguishes the system from traditional monetary instruments: explicit non-redeemability. Holders cannot convert units into physical gold or national currencies, preventing conversion runs on underlying assets. This structure anchors valuation confidence through gold backing whilst eliminating redemption pressure during market stress.

The non-redeemable framework resembles economist John Maynard Keynes' Bancor concept—a theoretical international clearing unit designed for settlement without redemption rights. However, the current implementation transforms theoretical frameworks into operational infrastructure, representing what analysts describe as the transition from ledger theory to ledger execution.

Impact on Global Reserve Currency ArchitectureCentral Bank Gold Accumulation Patterns

BRICS economies have positioned themselves as significant players in global gold markets through combined production and reserve strategies. China produced 380 tonnes and Russia 340 tonnes in 2024, whilst the alliance collectively controls approximately 50% of global gold production through member state output and strategic partnerships. This concentration of global gold reserves has significant implications for international monetary systems.

Table: BRICS Gold Reserve Holdings


Central bank purchasing patterns among BRICS members acquired more than 50% of global gold purchases between 2020-2024, systematically reducing reliance on dollar-denominated reserve assets. Brazil exemplified this trend by adding 16 tonnes in September 2025—its first purchase since 2021—demonstrating renewed institutional interest in precious metals reserves.

Dollar Dominance Evolution and Alternative Currency Development

JP Morgan identifies two primary scenarios potentially eroding dollar dominance: adverse events undermining perceived US stability, and positive developments outside the United States boosting alternative currency credibility. Recent trade policy implementations may accelerate these trends through unilateral tariff impositions and sovereignty challenges directed at traditional allies.
Foreign ownership of US Treasury markets has declined substantially, from 50% in 2014 to approximately one-third currently. This reduction in external demand for US debt instruments reflects concerns about fiscal sustainability and desire for reserve portfolio diversification.

"We are witnessing a simultaneous collapse in the price of all US assets including equities, the dollar versus alternative reserve FX and the bond market. We are entering unchartered territory in the global financial system."

Deutsche Bank Global Head of FX Research, as reported by Financial Times
Precious Metals Market Transformation Through Settlement IntegrationDemand Pattern Evolution from Passive Reserve to Active Settlement Asset

The integration of gold into daily settlement operations represents a fundamental shift in precious metals market dynamics. Traditional gold demand primarily reflected store-of-value functions and crisis hedging, with limited transaction-based usage. Settlement system integration transforms gold from a passive reserve asset into an active component of international trade infrastructure, contributing to the broader gold market analysis and investment outlook.

Key market transformation elements include:
• Government-level transaction demand creating institutional buying pressure
• Reserve requirement expansion as settlement systems scale operations
• Consistent purchasing patterns driven by operational rather than speculative needs
• Vault infrastructure development supporting tokenisation and digital settlement

Russian economist Yevgeny Biryukov characterised the strategic rationale: gold functions as protection against sanction risks, responds to unreliable traditional partnerships, and provides tangible asset recognition spanning thousands of years. This perspective emphasises precious metals as geopolitical insurance rather than purely economic instruments.

Supply Chain Implications and Production Control

BRICS control over global gold production creates strategic advantages in settlement system operations. The alliance's dominance in mining output ensures supply security for operational requirements whilst potentially influencing global price discovery mechanisms. Large-scale production combined with systematic reserve accumulation positions member states as both suppliers and major market influences.

Mine production strategic importance extends beyond current output levels. As settlement systems expand, consistent gold supply becomes critical infrastructure rather than commodity trading. This transformation may influence mining investment priorities and geographical production distribution patterns.

Banking Sector Adaptations and Investment Portfolio ImplicationsCorrespondent Banking Revenue Impact and Treasury Management Evolution

Traditional banking institutions face potential revenue disruption as alternative settlement mechanisms reduce demand for correspondent banking services. Foreign exchange trading volumes may shift toward alternative currency pairs, requiring banks to develop new market-making capabilities and risk management frameworks for non-dollar settlements, particularly given increasing commodities market volatility.

Treasury management strategies across multinational corporations must adapt to multi-currency settlement environments. Companies operating within BRICS economies may need to maintain diverse currency exposures and understand new hedging instruments for alternative settlement currencies.

Investment Strategy Modifications and Risk Management

Institutional investors require portfolio diversification strategies incorporating alternative currency exposure and commodity allocation adjustments. The monetary role expansion of precious metals suggests strategic allocation increases beyond traditional portfolio optimisation models.

Investment considerations include:
• Currency exposure diversification through alternative settlement mechanisms
• Emerging market access via new payment corridor development
• Commodity strategic positioning reflecting infrastructure role expansion
• Hedging instrument evolution for multi-system operational environments

Implementation Challenges and Systemic RisksTechnical Infrastructure Requirements and Cybersecurity Frameworks

Operational implementation requires robust cybersecurity protocols for digital settlement systems handling sovereign-level transactions. Interoperability standards between national payment networks remain undeveloped, requiring coordination across diverse technological infrastructures and regulatory frameworks.

Scalability considerations become critical as transaction volumes increase beyond pilot programme levels. The system must demonstrate capacity for high-volume trade settlement whilst maintaining security and operational redundancy during stress events.

Economic Coordination Complexities and Crisis Management

Member state coordination presents ongoing challenges for monetary policy independence versus settlement system stability. Exchange rate volatility management within currency baskets requires sophisticated hedging mechanisms and potential central bank intervention protocols.
Crisis liquidity provision mechanisms remain undefined for system stress events. Member states must develop frameworks for emergency support, reserve contribution requirements, and dispute resolution processes for operational disagreements.

Global Economic Architecture Implications and Future ScenariosMultipolar Monetary System Development

The emergence of alternative settlement systems suggests evolution toward fragmented global monetary architecture, where regional blocs operate parallel systems alongside traditional dollar-based infrastructure. This multipolar framework may reduce systemic risks associated with single-currency dependence whilst creating coordination challenges across different monetary zones.
The 55 countries currently using non-dollar currencies for international transactions, according to Watcher.Guru's De-Dollarisation Tracker, demonstrates growing institutional participation in alternative payment systems. This trend suggests momentum toward diverse settlement mechanisms rather than replacement of existing systems.

Investment Strategy Evolution and Market Psychology

Market participants increasingly recognise the potential for fundamental changes in international monetary architecture. Public interest in dollar debasement reached unprecedented levels during the fourth quarter of 2025, as measured by Google Trends data, reflecting institutional and retail concern about currency stability.

Portfolio construction must account for scenarios where multiple settlement systems operate simultaneously, requiring exposure to various currency zones and commodity-backed instruments. Risk management frameworks need adaptation for environments where traditional correlations may break down during monetary system transitions.

Long-term Implications for International Trade and Finance

The development of gold-anchored settlement systems represents a significant evolution in global monetary infrastructure, driven by fundamental concerns about monetary sovereignty, sanctions vulnerability, and concentration risk in dollar-dependent systems. Whilst implementation challenges remain substantial—including technical infrastructure requirements, member state coordination, and crisis management protocols—the underlying motivations suggest continued development regardless of short-term obstacles.

Success will depend on technical execution quality, institutional coordination among member states, and market acceptance of new settlement mechanisms. However, the combination of systematic central bank gold accumulation, declining dollar reserve shares, and expanding alternative payment networks indicates momentum toward more diverse international monetary architecture.

The implications extend beyond BRICS economies to influence global trade patterns, precious metals demand, and investment strategy development. Market participants must prepare for environments where multiple settlement systems coexist, requiring sophisticated risk management and portfolio diversification approaches adapted to multipolar monetary frameworks.

Disclaimer: This analysis contains forward-looking statements and speculative elements regarding monetary system development. Market conditions, political factors, and technological implementations may differ significantly from current projections. Investment decisions should incorporate comprehensive risk assessment and professional guidance appropriate to individual circumstances.

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India
Source: www.livemint.com

BRICS nations control 50% of the global gold reserves. What does it mean for the US Dollar?BRICS nations are shifting away from reliance on the US dollar to gold, now holding approximately 50% of global gold production

BRICS — a significant economic bloc of emerging nations comprising Brazil, Russia, India, China, and South Africa — is fast shifting its reliance on the US Dollar to gold through the accumulation of the precious metal. Although officially BRICS nations hold around 20% of the global gold reserves, they, along with their strategically allied states (who are not BRICS members but have strong ties with BRICS member countries), now collectively hold around 50% of the global gold production.

BRICS gold reserve

Russia and China are leading from the front in this strategy. In 2024, China produced 380 tonnes of gold, while Russia contributed 340 tonnes. Following this strategy, in September 2025, Brazil purchased 16 tonnes of gold, marking its first gold purchase since 2021.

Explaining the dual strategy of BRICS member countries, Anuj Gupta, Director at Ya Wealth, said, “BRICS member countries are both producing more gold and selling less. At the same time, they are also purchasing gold from the international market. According to existing data, between 2020 and 2024, the Central Banks of the respective BRICS nations purchased more than 50% of the global gold, information that US President Donald Trump may not like to hear.”

What lies behind this BRICS dual strategy?

Decoding this BRICS dual strategy on gold, Sachin Jasuja, Head of Equities and Founding Partner, Centricity WealthTech, said, "The increasing control of gold reserves and gold purchases by BRICS nations is emerging as a meaningful signal of stress within the US Dollar-dominated global financial order. While the US Dollar remains the world’s primary reserve currency, recent developments suggest that its uncontested supremacy is being gradually questioned rather than abruptly challenged."

Today, BRICS economies account for nearly 30% of global trade, giving their collective monetary choices global relevance. A long-standing objective of the bloc has been to reduce its reliance on Western financial infrastructure, particularly the US dollar, for trade settlement and reserve purposes0
.
Trigger for this shift

Highlighting the developments that led to the germination of this shift in BRICS member nations' thinking, Jasuja added, "The decisive shift in thinking followed the Russia–Ukraine war, when Western governments froze a substantial portion of Russia’s foreign exchange reserves. This episode fundamentally altered how sovereign nations perceive reserve safety. It demonstrated that reserves held in dollar-denominated assets or foreign jurisdictions are exposed to geopolitical risk if political alignment breaks down. Since then, reserve management has increasingly prioritised assets that are politically neutral, physically held, and immune to external control."

Sachin Jasuja said that BRICS central banks have been among the most aggressive buyers, with China, Russia, and India now ranking among the world’s largest official gold holders. As a result, gold’s share in BRICS foreign exchange reserves has steadily increased, while exposure to dollar assets has moderated at the margin. This reserve shift has coincided with a sharp and sustained rally in gold prices, reflecting not only inflation hedging but also strong official demand. The price action suggests markets are increasingly recognising gold’s renewed role as the ultimate reserve asset in a fragmented financial system—one where trust in reserve currencies is no longer unconditional.

BRICS reducing dependence on the US Dollar

"BRICS nations have been actively reducing dollar dependence in trade. Over the past decade, the share of intra-BRICS trade settled in local currencies has risen steadily, with roughly one-third of such trade now bypassing the dollar. Bilateral arrangements—such as India–Russia and China–Brazil trade in local currencies—illustrate a pragmatic shift aimed at lowering transaction costs, reducing exposure to sanctions, and limiting dependence on dollar liquidity cycles," said Jasuja.
How will this strategy work?

Asked about the outcome of this dual strategy on gold adopted by BRICS members and their allied states, Ponmudi R, CEO at Enrich Money, said, "BRICS influence is clearly rising in annual gold production, with member and aligned countries accounting for close to half of the new global supply. This distinction matters because control over future supply enhances strategic flexibility without implying immediate dominance over the global monetary system. The recent acceleration in gold purchases by BRICS central banks should be seen primarily as a risk-management and diversification strategy. Gold is a neutral, sanction-resistant asset, and recent geopolitical developments have led many emerging economies to reassess reserve concentration risks."

Challenge for BRICS gold-backed currency?

The Enrich Money expert stated that the recent acceleration in gold purchases by BRICS central banks should be viewed primarily as a risk-management and diversification strategy. Gold is a neutral, sanction-resistant asset, and recent geopolitical developments have led many emerging economies to reassess the risks associated with holding their reserves in this asset.

"Real structural contest is not gold alone, it is the petrodollar system, trade realignments, and rising import tariffs. China’s strategic push toward electric vehicles, renewable energy, and reduced dependence on fossil fuels is part of a broader effort to rewrite global trade and energy rules, reducing long-term exposure to dollar-linked commodity pricing," Ponmudi R said.

"BRICS’ growing gold accumulation does not signal the end of the dollar’s role, but it does mark a credible structural shift toward a more diversified and multipolar global financial system—one in which gold is quietly reclaiming its role as the ultimate anchor of monetary trust," Sachin Jasuja concluded.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

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For some of the world’s poorest people, BRICS — originally Brazil, Russia, India, China and South Africa — is becoming a Trojan horse for Moscow’s war machine. Under the banner of “South-South cooperation,” Russia has turned economic desperation into a recruitment tool and built a model that other authoritarian members could one day replicate at scale. 

In recent years, Russia has targeted poor, marginalized women abroad as low-skill labor for Iranian-designed drone production. Recruiters lure them with promises of education or good jobs, but place them in harsh, dangerous conditions in military facilities vulnerable to Ukrainian strikes.

Evidence suggests these programs meet international definitions of human trafficking and forced labor — and BRICS-branded entities have played a recruitment role. 

In May, the South African chapter of the BRICS Women’s Business Alliance — whose now-suspended website lauds the alliance’s role in “championing advancement of women in driving economic growth and innovation” — facilitated an agreement to recruit more than 5,600 South Africans for two Russian organizations, Alabuga Special Economic Zone and construction company Etalonstroi Ural. Alabuga Special Economic Zone is now under investigation in South Africa and was sanctioned by the United States, the European Union and the United Kingdom for supporting Russian drone procurement. Meanwhile, the BRICS Student Commission signed a separate agreement in January to recruit South African women for a related Alabuga program, Alabuga Start.

South Africa’s official unemployment rate is 31.9 percent. For those ages 15 to 24, that figure jumps to 58.5 percent. It’s no wonder that, for many, a job abroad can feel like the only escape. This is the desperation that Russia exploits, and BRICS offers the perfect ecosystem for doing so. With the political prestige of a multilateral institution, an expanding financial infrastructure, and a narrative of solidarity among developing nations, the BRICS bloc risks becoming less a platform for mutual development than a factory for what might be called human weapons of mass desperation. 

Russia, China and Iran already exploit labor through opaque or coercive means. Across Asia, Africa and the Middle East, investigations show patterns of passport confiscation, debt bondage and duplicitous recruitment linked to Chinese Belt and Road Initiative projects. Meanwhile, Iran has allegedly relied on coercion to recruit foreigners — including children — to fight within its Fatemiyoun Brigade in Syria. 

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BRICS could provide space and structure for these countries to further exploit the very populations that this diplomatic bloc purports to defend. The group’s loosely organized women’s councils, youth alliances and student commissions operate with limited transparency but enjoy the perceived weight of a major multilateral bloc. Additionally, its emerging alternative financial platforms, such as BRICS Pay, could allow funds to move opaquely and beyond the jurisdiction of U.S. and allied powers. In this context, Russia’s recruitment effort in South Africa shows how BRICS could evolve: toward a system in which countries whose citizens most need protection against predatory recruitment are the least equipped to provide it — and, worse, may help enable it. 

To combat foreign malign influence and stand against BRICS-enabled human exploitation, the U.S. Treasury and State Departments should issue a joint advisory identifying the risks posed by certain BRICS-linked entities and detailing red flags for coercive recruitment. This would help governments and labor groups recognize warning signs before similar programs take hold elsewhere. 

Washington should also share intelligence with countries whose citizens have been targeted, though coordination is necessarily limited by partner receptiveness. South Africa would benefit from closer coordination with U.S. law enforcement to trace the money behind these recruitment networks, but Pretoria’s growing alignment with Moscow, Beijing and Tehran complicates any partnership on sensitive intelligence matters. 

When BRICS-affiliated organizations provide material support to sanctioned Russian entities, Washington should aggressively apply economic sanctions. In some cases, it may already be obligated to do so. Alabuga Special Economic Zone is sanctioned pursuant to an executive order that implicates the mandatory application of secondary sanctions, placing entities like the BRICS Women’s Business Alliance at risk of sanctions. 

Still, addressing forced labor within and beyond BRICS requires more than targeting individual networks. It demands dismantling the permissive environments in which these schemes operate — environments that thrive on widespread economic desperation, opaque institutions, corruption and perceived political prestige. 

Many of the world’s most malign authoritarian countries already possess the motive, means and opportunity to transform BRICS institutions into tools of exploitation. If the United States hopes to prevent BRICS from becoming an engine for human weapons of mass desperation, it must begin by acknowledging the nature of the threat and by helping the world’s most vulnerable defend themselves against it. 

Max Meizlish is a research fellow at the Foundation for Defense of Democracies, where Angela Howard is a research analyst.