BRICS alarm: Dive of the US dollar-gold reserves at record high!

BRICS alarm: Dive of the US dollar-gold reserves at record high!

BRICS caused unrest in the US dollar reserves after the white house's sanctions against Russia in 2022. The alliance has been accumulating gold for two years and diversifies the reserves of its central banks with the precious metal. In the past 18 months, the central banks of the developing countries have bought a total of 800 tons of gold. China is particularly worth mentioning, which has acquired a remarkable 225 tons of gold in the past 15 months alone.

Russia, China and India are among the largest gold buyers and drive up prices for the precious metal. According to the World Gold Council, the central banks bought a net 800 tons of gold this year alone, which is 14 % more than in the same period of the previous year. These efforts mean that the US dollar reserves drop because Brics replaces them with gold.

US dollar reserves of the central banks drops to 58.2 %

Current data show that the US dollar-dominated foreign exchange reserves of the central banks fell to 58.2 % in 2024. This has been the lowest value since 1995, since Brics and other developing countries are increasingly adding gold and other local currencies.

In addition, other “non-traditional reserve currencies” slowly take their place next to the US dollar and the euro in the central banks of BRICS and developing countries, according to the IMF. The central banks reduce their US dollar reserves in favor of these alternatives. If gold of dominance in the Brics countries reserves gain gold, the US dollar could suffer serious deficits. The steep acceptance of the reserves indicates that the de-$enization could tighten the situation for the USD.

If this trend continues, the emerging countries could significantly influence the global financial regulations, which could urge the United States and the West into a subordinate position. A comprehensive overview of the situation provides watchcher.guru .

The growing demand for gold and the reduction of US dollar reserves in the central banks of the BRICS countries could exert considerable pressure for global markets. This development could have long -term effects on stability and power in the global economy.