BRICS member Brazil has joined the US Treasuries dumping bandwagon in 2026. The latest report from the Central Bank of Brazil (BC) shows a sell-off of US Treasury securities worth $61 billion. The monetary authority disposed of the US dollar-denominated assets and has purchased gold instead. The maneuver signals a concrete effort of de-dollarization in the Brazilian economy.

The central bank is diversifying its economy and accumulating gold to safeguard its interests. The economic situation in the US is in turmoil due to uncertainty in trade policies from the White House. This makes BRICS members like Brazil, India, China, and Russia cut exposure to US Treasuries and opt for gold.

Also, BRICS member Russia’s investment in gold since 2022 has doubled in value compared to US Treasuries. The XAU/USD index crosses past the $5,500 range on Thursday, reaching a lifetime high. However, gold prices are facing a correction on Friday as they dipped 350 points in a single trading session. The correction looks healthy as prices of the precious metal have peaked.

Also Read: Money Must Flow Directly: Why Should BRICS Pay in the US Dollar?

BRICS Offloading US Treasuries, Diversifying Central Bank Reserves With Gold

The World Gold Council reported that BRICS remains the largest buyer of the precious metal since 2022. The alliance now controls over 50% of the global supply of the glittery metal. The US Treasuries and bond market are facing stiff competition from diversified assets. Investments in gold are paying off, while holding US dollar-denominated assets is now a risky affair.

The de-dollarization theme is gaining strength among BRICS members who are offloading US Treasuries. The foreign policy of these governments is prioritizing diversification of assets to safeguard their national economies. The US debt, which is marching towards $40 trillion, is a grey cloud hanging above the American economy. If the cloud pops, not just the US, but the world economy would be affected. In conclusion, moving away from the US dollar-denominated assets is the best option to protect their economy.