BRICS De-Dollarization Accelerates as Central Banks Snap Up 166t Gold

BRICS Accelerates De-Dollarization as Central Banks Ramp Up Gold Purchases and Push for 2026 Currency Launch

The BRICS economic bloc’s campaign to reduce reliance on the U.S. dollar is accelerating at a pace not seen in decades. In the second quarter of 2025 alone, central banks purchased 166 tonnes of gold — a 41% increase above historical quarterly averages — signaling a strategic shift toward building reserves in alternative assets.

According to the World Gold Council, this surge in demand is not driven by short-term market speculation, but by long-term monetary strategy. The buying spree is spearheaded by BRICS nations such as China, Russia, India, and Turkey, with the clear goal of diversifying away from dollar-dominated reserves and laying the groundwork for an alternative currency system.

“Gold isn’t just a hedge; it’s insurance against the fragility of the global monetary system,” said Jeff Quartermaine, CEO of Perseus Mining.

Industry analysts view this accumulation as part of a structural transformation in global finance — one in which the BRICS bloc is using gold to fortify its monetary independence ahead of the planned rollout of a joint currency, tentatively set for 2026.

Gold Reserves Reach Historic Levels

Central banks globally now hold over 36,000 tonnes of gold, with BRICS members leading the charge. The purchases in Q2 2025 represent one of the largest quarterly acquisitions in modern history, further cementing gold’s role as a foundation for the emerging multipolar monetary order.

The World Gold Council notes that institutional demand from central banks behaves differently than retail investor flows, remaining consistent and largely unaffected by short-term price volatility or cyclical economic changes.

For BRICS, the implications are clear: the more gold held in reserves, the stronger the bloc’s position when it comes to introducing an alternative currency capable of competing with the U.S. dollar on the global stage.

De-Dollarization Gains Momentum

BRICS nations have been steadily reducing their U.S. dollar reserves for years, but the pace has accelerated dramatically in 2025. The move comes amid heightened geopolitical tensions, ongoing sanctions affecting member states, and growing dissatisfaction among emerging economies with the dollar’s dominance in global trade.

Through policy reforms and trade agreements, BRICS members are prioritizing the use of local currencies in bilateral transactions. This not only reduces their exposure to U.S. monetary policy but also builds the operational foundation for a future BRICS currency.

At the 17th BRICS Summit in Brazil in July 2025, leaders finalized plans to expand digital payment infrastructure, streamline cross-border settlements in local currencies, and enhance trade networks within the bloc. Officials from multiple member states confirmed that these steps are part of the broader 2026 timeline for launching the BRICS currency.

BRICS-10 Expansion Increases Global Influence

Since its expansion earlier this year to include new members, the so-called “BRICS-10” now represents 46% of the world’s population and 37% of global GDP. The enlarged bloc wields unprecedented economic influence, spanning energy markets, manufacturing hubs, and vital resource exports.

This expanded membership has also given BRICS greater leverage to bypass traditional financial systems such as SWIFT, which is heavily dominated by Western institutions. Alternative payment systems are being developed to facilitate trade in local currencies and, eventually, in the planned BRICS currency.

Discussions about “when will BRICS currency be released” have moved beyond speculation into concrete planning. With the 2026 target date in sight, member nations are aligning their monetary policies, payment technologies, and gold-backed reserve strategies to ensure the currency launch is both credible and functional.

Gold Mining Sector Benefits from Currency Realignment

The surge in gold buying has had a ripple effect across the mining industry, particularly in BRICS-aligned economies. Producers with revenues in U.S. dollars and operational costs in weaker local currencies are enjoying significant margin expansion, thanks to favorable exchange rates.

“We’re enjoying a very preferable exchange rate, which is very much in our favor,” said Mike Hodgson, CEO of Serabi Gold. “We can do everything out of cash flow, without the need to dilute shareholders.”

Perseus Mining’s African operations have similarly benefited from the current monetary climate. Quartermaine reported that the company ended its fiscal year with production of 496,000 ounces, outperforming earlier forecasts despite rising cost expectations.

“In fact, what we have done is performed better than what we had anticipated,” Quartermaine said, emphasizing the alignment between mining operations and regional central bank gold accumulation strategies.

The Strategic Case for Gold-Backed Reserves

For decades, gold has been regarded as a safe-haven asset in times of uncertainty. But in the current geopolitical and economic climate, BRICS nations are viewing gold not just as insurance but as a cornerstone of a new monetary architecture.

Gold’s role in this system is twofold: it provides a stable asset base that cannot be devalued by the monetary policies of foreign governments, and it serves as a confidence-building measure for trading partners who may be wary of adopting a new currency.

Economists point out that gold-backed reserves could help stabilize the value of a future BRICS currency, making it more attractive for use in international trade. By accumulating gold now, BRICS members are effectively pre-positioning themselves to launch a currency that carries intrinsic value from day one.

Implications for the Global Monetary Order

The convergence of record gold purchases and the accelerating development of the BRICS currency has major implications for the global financial system. If successful, BRICS could establish a viable alternative to the U.S. dollar for international trade, weakening one of America’s most significant tools of economic influence.

While skeptics argue that the dollar’s dominance is too entrenched to be seriously challenged in the near term, others point to historical precedents where shifts in reserve currency status have happened faster than expected. The British pound’s decline in the mid-20th century, for instance, was hastened by geopolitical and economic shifts not unlike those seen today.

If the BRICS bloc follows through on its 2026 timeline, it could mark the beginning of a multi-currency global reserve system — one in which gold once again plays a central role.

A Turning Point Approaches

The developments of 2025 suggest that the BRICS de-dollarization campaign is no longer a theoretical exercise but a coordinated and actionable plan. The unprecedented pace of gold accumulation, combined with major investments in payment infrastructure and currency settlement systems, indicates that the bloc is laying the groundwork for a seismic shift in global finance.

As the 2026 launch date for the BRICS currency approaches, global markets will be watching closely. Whether this currency will be gold-backed, fully digital, or a hybrid remains to be seen, but one thing is certain: BRICS is positioning itself for a future where the dollar is no longer the unchallenged king of global trade.

Source:  https://watcher.guru/news/central-banks-buy-166t-gold-as-brics-pushes-de-dollarization-forward

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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