Through the accumulation of the precious metal, a major economic bloc of developing countries, including Brazil, Russia, India, China, and South Africa, is quickly moving away from the US dollar and toward gold.
BRICS gold reserve and production
Despite legally holding about 20% of the world’s gold reserves, the BRICS countries and its strategically linked states—which are not BRICS members but have close relations to them—now account for about 50% of the world’s gold production.
The BRICS gold reserve strategy
In this approach, China and Russia are at the forefront. Russia contributed 340 tonnes of gold in 2024, while China produced 380 tonnes. Using this tactic, Brazil made its first gold purchase since 2021 in September 2025 when it bought 16 tonnes of the metal.
“BRICS member countries are both producing more gold and selling less,” stated Anuj Gupta, Director at Ya Wealth. They are also buying gold from the global market at the same time. The Central Banks of the BRICS countries bought more than half of the world’s gold between 2020 and 2024.
💰 BRICS Gold & USD Shift
- Shift: BRICS reducing reliance on US dollar
- Gold Reserves: ~20% of world reserves, ~50% of production
- 2024 Production: China 380t, Russia 340t
- Recent Purchase: Brazil 16t in Sept 2025
- Policy: Produce more, sell less, buy globally
- Trigger: Russia–Ukraine war showed dollar risks
Motivation behind the dual policy
“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,” stated Sachin Jasuja, Head of Equities and Founding Partner, Centricity WealthTech. Although the US dollar is still the most important reserve currency in the world, recent events indicate its unquestionable dominance is being progressively called into doubt.
Since the BRICS economies now make up around 30% of the world’s trade, their combined monetary decisions are significant globally. Reducing reliance on Western financial infrastructure, especially the US dollar, for trade settlement and reserve purposes has long been a goal of the union.
Trigger for the shift
“The major shift in thinking followed the Russia–Ukraine war, when Western governments froze a substantial percentage of Russia’s foreign exchange reserves,” Jasuja continued. This incident changed the perception of reserve safety among independent nations, proving that assets stored in foreign jurisdictions or dollar-denominated are vulnerable to geopolitical risk.
BRICS central banks’ aggressive gold purchases
The central banks of China, Russia, and India have been among the most aggressive gold purchasers. As a result, exposure to dollar assets has somewhat decreased, while gold‘s portion of BRICS foreign exchange reserves has gradually climbed.
💰 BRICS Gold & USD Reliance
- Central Banks: China, Russia, India buying gold aggressively
- Effect: Dollar exposure decreases, gold share in reserves rises
- Gold Prices: Steadily rising due to demand and inflation hedging
- Dollar Reliance: ~1/3 of intra-BRICS trade now avoids USD
- Dual Policy: BRICS controls nearly half of new global gold supply
- Risk & Diversification: Gold reduces geopolitical and financial risks
- Structural Shift: Reflects multipolar finance; US dollar still dominant
Gold prices have risen sharply and steadily with this reserve shift, indicating both strong official demand and inflation hedging.
Reduction in US dollar reliance
“The BRICS countries have been aggressively lowering their reliance on the US dollar in commerce. The percentage of intra-BRICS commerce settled in local currencies has increased gradually over the last ten years, with about one-third of such transactions now avoiding the dollar,” according to Jasuja.
Impact of the dual gold policy
“BRICS impact is obviously rising in annual gold production, with member and aligned countries accounting for close to half of the new world supply,” stated Ponmudi R, CEO of Enrich Money. Control over future supply improves strategic flexibility without assuming immediate domination over the global monetary system.
Risk management and diversification
The surge in gold purchases by BRICS central banks should be viewed mainly as a risk-reduction and diversification tactic. Gold is neutral, sanction-resistant, and many emerging nations are reevaluating the dangers of reserve concentration in light of geopolitical developments.
Structural challenges beyond gold
“The petrodollar system, trade realignments, and growing import taxes are the true structural challenges, not just gold. China’s strategic push toward electric vehicles, renewable energy, and less reliance on fossil fuels is part of a larger campaign to rewrite global trade and energy regulations,” stated Ponmudi R.
According to Sachin Jasuja, the growing gold reserves of BRICS nations do not imply the US dollar is losing dominance. Instead, they reflect a structural transition toward a more balanced, multipolar global financial system, where gold is steadily regaining its importance as a foundation of monetary confidence.
