BRICS member Russia is heavily diversifying its foreign exchange reserves by replacing the US dollar with gold. As of March 2025, gold makes up 34.4% of Russia’s foreign exchange reserves and is worth $217.4 billion. The Central Bank of India is massively accumulating the precious metal to safeguard its economy from market turmoil.

Also Read: BRICS: Analyst Reveals If the US Dollar Can Maintain Its Dominance

Russia is just one among the BRICS nations that has been aggressively buying gold since 2022. Its counterparts China, India, and Brazil have also been accumulating the glittery metal for 36 months. The developing countries are looking to sideline the US dollar for foreign exchange reserves as the currency comes with the risk of debt.

If the market crashes, holding the US dollar becomes a financial burden and weakens their respective economy. Therefore, BRICS members are turning towards gold and other local currencies to distance themselves from the threat of acquiring debt. If the US fails to export the dollar, inflation could wreak havoc in the homeland leading to a rapid price rise for daily essentials.

Also Read: BRICS: New Country Plans to Reduce 25% of Trade Without US Dollar

However, one US stock has remained recession-proof and even outperformed the bear markets in the 2008 financial crash and the 2020 COVID-19 lockdown crash. Read here to know the recession-proof US stock that defied all odds and came out on top during financial adversities. Even gold stocks cannot bear a market crash and the glittery metal can affect BRICS members’ reserves.

BRICS Newfound Love for Gold

brics nations flags gold
Source: VCG / ChinaDaily.com.cn

Speculation is also doing the rounds that BRICS aims to launch a new currency backed by gold in the coming years. Therefore, the alliance members are massively accumulating the metal in their central banks and diversifying their reserves. The goal is to usher into a new era of financial establishment where the US dollar plays no significant role. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.

Also Read: BRICS Makes Major Announcement on De-Dollarization

  • BRICS
  • GOLD
  • Russia