This news, combined with the unreal US debt that exceeds 33 trillion, is the most important indicator for geopolitical events and their projection in the immediate future. Note that every day that passes the beast called “US debt” grows by 100 million dollars(!) and most American economists agree that it is now impossible to service.
The BRICS, operating in a new framework and with prudence and diligence, are constantly raising their footprint in the international economy. From the time of 2022, when the USA and the EU have decided to impose economic sanctions on the Russian Federation, the BRICS are creating problems for US dollar reserves, in every way. The alliance has been hoarding gold and shifting central bank reserves of the precious metal for two years. The central banks of these countries combined have acquired another 800 tons of gold in the last 18 months alone, with China having bought 225 tons of gold in 15 months!
Russia, China and India are now the top buyers of gold and effectively decide the prices of the precious metal.
The World Gold Council specifically states:
“On an annual basis, central banks have bought a staggering 800 tonnes, 14% more than the same period last year.”
This practice leads to a decrease in international US dollar reserves as the BRICS replace them with gold in their central banks.
BRICS: US dollar central bank reserves fall to 58.2%
The latest figures show the central bank’s US dollar foreign exchange reserves down to 58.2% for 2024, so far. This marks the lowest size recorded since 1995, as a result of this aggressive economic process by BRICS and other developing countries adding gold and other local currencies to their central bank reserves.
The IMF admitted in its reports that: “the main alternative to the US dollar and the euro is non-traditional reserve currencies”. As you understand, the wrong policy of sanctions is violently dragging the euro to the grave.
In the medium term, if gold dominates as a BRICS central bank reserve product, then the US dollar will face further deficit risks. De-dollarization understandably makes things worse for the dollar. Emerging economies led by the BRICS will be able to lead the global economic community, leaving the US and the West scrambling to prevent the sinking of the Titanic.
