BRICS Nations Gold Backed Currency: Russia confirms
In recent news. it was reported that Russia has certainly confirmed that BRICS is going to create a gold-backed currency. You are required to read the article for a more detailed study of the news. Follow us around for all the insights and fresh updates on PKB news. To never miss any updates, subscribe to our website for all valuable news around the world.
BRICS Nations Gold Backed Currency
Recently, it was reported that the introduction of gold-backed currency in BRICS came as a shockwave to the global fiat money system. The news was confirmed by the economist in Russia which will launch in August. It was believed that the BRICS countries could soon launch a viable alternative to the US dollar. The major news was broke out by Russia. Significantly, the gold market could see new bullish momentum as the world could see a new type of gold standard. According to the state-run RT., the Russian government on Friday confirmed that Brazil. Russia, India, China, and South Africa, altogether known as BRICS nations will introduce a new trading currency backed by gold. The official announcement is expected to be made during the BRICS summit in August in South Africa.
Continue reading for more insights regarding the news. The recent news is adding new momentum to the current de-dollarization trend which is unfolding in the global economy. It was marked that since mid-2022, the central banks have been buying gold at a historic pace worldwide in part to differ their reserve away from the US dollar. It was also known that the gold-backed currency is the next evolution in this process. According to analysts, China’s recent gold purchases are an attempt to bring international expenses to the yuan. Similarly, at the same time, the US government’s process of weaponization of the US dollar against Russia for interfering in Ukraine has created some geopolitical uncertainties within nations that are allied with Russia.
It was believed that the gold-backed BRICS currency will provide significant support to gold, but some analysts also expect that it will take time before the impact will be seen in the market. According to the chief economist at Degussa, the announcement is a step in the right direction and there is still a long way to go to become it to reality. However, other analysts remain highly doubtful about the announcement. Moreover, many analysts have been speculating about a new global currency to challenge the US dollar’s role as the world’s reserve currency.
