BRICS countries: de-dollarization, the BRICS currency, and influence on the gold price

The global economy is in a transitional phase. For decades, the US dollar was the undisputed standard in global trade. Today, we see a strong international movement that we call de-dollarization, where a growing group of nations wants to be less dependent on this dollar.

Within this geopolitical shift, the BRICS countries play the absolute leading role. At the same time, net gold purchases by central banks are taking on historically large proportions.

In this knowledge center article, you will read exactly what the BRICS countries are, why they are seeking monetary independence, and what this means for the global gold price and your investment in physical precious metals.

What are the BRICS countries exactly?

To fully understand the impact of the BRICS countries on the current global economy, it is important to look at the remarkable history of this power bloc. The term was first introduced in 2001 by Jim O'Neill, an influential top economist at the investment bank Goldman Sachs.

He predicted that the emerging economies of Brazil, Russia, India, and China would dominate global growth in the 21st century and grouped these countries under the acronym BRIC.

What began as a theoretical economic concept quickly became a political reality. In 2009, the very first official summit between these 4 nations took place in Russia, formally establishing the alliance. A year later, in 2010, South Africa was accepted as a full member, creating the final and well-known acronym BRICS.

For years, the coalition consisted exclusively of these 5 major powers. That recently changed. The partnership has significantly expanded with strategic partners from the Middle East, Asia, and Africa. According to the most recent official sources, the coalition now consists of 11 influential members.

Overview of the current BRICS countries

In the table below, you will find an overview of all current member states and when they joined this global network.

This recent expansion makes the alliance economically and geopolitically more dominant than ever before. Current data shows that the BRICS countries now collectively represent 49.5 percent of the total global population.

In addition, they account for over 40% of the global gross domestic product and control over a quarter of international trade. Control over global oil production has also become unprecedentedly large due to the accession of strategic countries from the Middle East.

The BRICS-countries are working on financial independency from western currencies like the dollar.

De-dollarization: The flight from the dollar

For decades, the US dollar has served as the cornerstone of the global financial system. However, the BRICS countries are actively striving to drastically reduce this massive dependency. We call this strategic and geopolitical process de-dollarization.

Why do BRICS countries want to move away from the dollar?

The desire for financial independence is not new, but it has gained significant momentum in recent years. The direct catalyst for this was the Western response to the Russian invasion of Ukraine.

Russia was almost immediately cut off from the international payment system SWIFT. In addition, billions in national foreign exchange reserves were frozen by Western countries.

For many emerging economies, this was a harsh and confronting warning. It irrefutably demonstrated that the current Western financial network and the US dollar can be used as a direct weapon. To reduce this geopolitical vulnerability, the countries are now focusing on the following 3 points:

• Trade in local currencies: By settling international deliveries directly in their own currencies, such as the Chinese renminbi or the Indian rupee, these nations avoid the exchange rate risks and sky-high transaction costs of the dollar system.
• Independent payment networks: The member states are actively building their own international and linked payment systems to be able to move capital safely outside the control of the Western SWIFT system.
• Diversification of the state treasury: Central banks are rapidly moving their accumulated capital out of US Treasury bonds and dollars into safe and neutral alternatives, with physical precious metals being the preferred choice.

Will there be a BRICS currency or gold standard?

Within the financial world, there has been continuous speculation for years about the launch of a common currency by the BRICS countries. The goal of this currency would be to simplify international trade and break the dominance of the US dollar.

The term BRICS gold standard often comes up in these discussions. But how realistic are these grand monetary plans, really?

The current monetary reality

To provide immediate clarity: at this moment, there is absolutely no official BRICS currency in circulation. Furthermore, no concrete date for a potential introduction has been communicated. Creating a fully-fledged common currency is an extremely complex process that requires enormous political, legal, and monetary alignment.

The 11 current member states differ fundamentally from each other in terms of economic structure, inflation, and interest rate policies. A universal currency used by consumers in all these highly diverse countries, similar to the euro in Europe, is therefore highly unlikely in the short term.

3 possible monetary scenarios

Nevertheless, behind the scenes, serious work is being done on solutions to reduce dependence on Western currencies. When independent analysts discuss the monetary plans of the BRICS countries, they typically distinguish between 3 possible scenarios:

• A full gold standard: In this classic model, a new currency is directly exchangeable for a fixed amount of physical gold. This offers the market maximum security. The major disadvantage for governments, however, is that it severely limits their flexibility. They cannot stimulate the economy by printing money, because the money supply is exactly linked to the slow growth of the gold supply.
• A gold-backed international trade currency: This is a significantly more realistic option. In this scenario, the countries create a closed digital unit of account used exclusively for mega-transactions between central banks. This trade currency is partially or fully supported by the physical gold reserves of the participating countries.
• A diversified currency basket: In this much-discussed intermediate variant, the backing of the new trade currency consists of a balanced mix. This basket would then contain a significant percentage of physical gold, supplemented by strategic commodities and the strong local currencies of the various member states.

The priority for the near future

For the time being, the emerging economies are primarily focusing on the extremely important intermediate steps. The absolute priority currently lies in developing alternative payment systems and seamlessly linking their own national financial infrastructures.

Although a BRICS currency is not currently relevant for you as a consumer, the ongoing discussion about a gold-backed system is already playing a role in the increasing global confidence in physical precious metals.

Central banks of the BRICS countries are buying enormous quantities of gold to add to their reserves.

Central banks are increasing their gold reserves at a record pace

Regardless of the exact form of a future BRICS currency, emerging economies are clearly positioning themselves for a larger monetary role for precious metals.

Worldwide, governments are currently increasing their gold reserves at a rapid pace. They choose to buy physical gold to strengthen their national financial resilience, simply because it is the only reserve without counterparty risk.

This historic flight to precious metals is driven by 3 clear trends:

• Historic purchase volumes: The official figures from the World Gold Council speak volumes. In 2025, central banks worldwide bought a massive net total of 863 tonnes of physical gold. This accumulation continued unabated in the first quarter of 2026 with a net purchase volume of 244 tonnes.
• Eastern dominance: This sustained demand comes almost entirely from countries outside the Western sphere of influence. Major powers such as China, India, and Russia are acting as the frontrunners in this global institutional gold rush.
• Repatriating reserves: Countries are not only buying new gold en masse but are also rapidly withdrawing their existing reserves from Western vaults in London and New York. By safely storing the gold within their own borders, governments directly protect themselves against potential foreign seizures.

The institutional flight to gold at a glance

In the table below, you will find a clear summary of the most important current purchase figures and the strategic drivers of these countries.

What is the influence of BRICS on the current gold price?

The rise of the BRICS countries influences the global gold market, but we must view this dynamic with nuance. These emerging economies do not steer the price directly by simply turning a dial.

The impact is fundamental in nature and occurs primarily through structural market demand and overall geopolitical sentiment.

• An extremely solid price floor: Because superpowers such as China, India, and Russia continue to buy gold continuously and in massive volumes, a constant demand side is created. This demand for physical precious metals prevents deep price drops and forms a very strong floor under the current price.
• The role as a safe haven: The broader discussion surrounding de-dollarization and the establishment of independent trading systems creates geopolitical uncertainty. In times of profound shifts in global power dynamics, investors have historically always fled to the security of tangible gold.
• A direct alternative to fiat money: Now that the US dollar is slowly but surely losing its absolute monopoly, gold is regaining its centuries-old monetary status. The precious metal is once again being recognized by governments worldwide as the independent reserve.

Beware of speculative BRICS crypto

Because the topic is globally popular, many private investors wonder if they can purchase a BRICS currency themselves. The answer to this is no. There is no official tangible currency for consumers.

Therefore, pay close attention: speculative cryptocurrencies or tokens with BRICS in the name are regularly offered online. These are private initiatives that have absolutely nothing to do with the monetary plans of these countries.

Do you want to protect your wealth and ride along with this global shift? Then purchasing physical gold through The Silver Mountain is the safest and most proven strategy. You then invest directly in the same scarce commodity used by superpowers to secure their financial future.

Conclusion: BRICS increases the focus on gold

The rise of the BRICS countries is important for the gold market, although the US dollar remains dominant for the time being. Although an official BRICS currency or gold standard is still lacking, these nations are actively pursuing monetary independence.

Gold plays a leading role in this as a neutral reserve asset. The massive gold purchases by these central banks offer enormous structural support. For you as an investor, this geopolitical de-dollarization is therefore not a direct predictor, but it is a strong foundation for the future gold price.