BRICS nations and strategically allied states collectively hold approximately 50% of global gold production despite official reserves representing around 20% of the global total, as the bloc accelerates its shift from US dollar reliance, Mint reported on December 28.
Russia and China are leading the strategy, with China producing 380 tonnes of gold in 2024 whilst Russia contributed 340 tonnes. Brazil purchased 16 tonnes in September 2025, marking its first gold purchase since 2021.
"BRICS member countries are both producing more gold and selling less. At the same time, they are also purchasing gold from the international market. According to existing data, between 2020 and 2024, the Central Banks of the respective BRICS nations purchased more than 50% of the global gold," Anuj Gupta, director at Ya Wealth, stated.
Sachin Jasuja, head of equities and founding partner at Centricity WealthTech, stated that increasing control of gold reserves by BRICS nations signals stress within the US dollar-dominated global financial order.
"While the US Dollar remains the world's primary reserve currency, recent developments suggest that its uncontested supremacy is being gradually questioned rather than abruptly challenged."
BRICS economies account for nearly 30% of global trade, giving collective monetary choices global relevance. The bloc has pursued reducing reliance on Western financial infrastructure, particularly the US dollar, for trade settlement and reserve purposes.
"The decisive shift in thinking followed the Russia-Ukraine war, when Western governments froze a substantial portion of Russia's foreign exchange reserves. This episode fundamentally altered how sovereign nations perceive reserve safety. It demonstrated that reserves held in dollar-denominated assets or foreign jurisdictions are exposed to geopolitical risk if political alignment breaks down," Jasuja stated.
BRICS central banks rank among the world's most aggressive buyers, with China, Russia and India now among the largest official holders of gold.
Gold's share in BRICS foreign exchange reserves has steadily increased while exposure to dollar assets has moderated. The reserve shift has coincided with a sharp, sustained rally in gold prices, reflecting inflation hedging and strong official demand.
Over the past decade, the share of intra-BRICS trade settled in local currencies has risen steadily, with roughly one-third now bypassing the dollar.
Bilateral arrangements such as India-Russia and China-Brazil trade in local currencies illustrate a shift aimed at lowering transaction costs and reducing sanctions exposure.
The BRICS bloc now counts 11 members, expanding from its original five emerging powers into a broader coalition spanning Latin America, Eurasia, Africa and the Persian Gulf, with Brazil, Russia, India, China and South Africa joined by Egypt, Ethiopia, Iran, the UAE, Saudi Arabia (tentative) and Indonesia.
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