BRICS Looks for Gold Reserve Increase, Brazil Leads the Dollar-Free Strategy

StablecoinGuardian · 2026-02-12T14:12:33+00:00

Brazil's Central Bank is reducing US Treasury holdings in favor of gold, reflecting concerns over US financial stability and a push for de-dollarization. This shift aligns with BRICS' strategy to strengthen gold reserves and diversify financial systems amidst rising gold prices driven by demand from member countries.

StablecoinGuardian

2026-02-12 14:12:33

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Amid geopolitical conflicts and concerns over the stability of the global financial system dominated by the US dollar, the BRICS countries are making a strategic shift by increasing gold reserves. The pioneer in this movement is the Central Bank of Brazil, through a series of bold financial decisions aimed at protecting and strengthening national assets.

Brazil Withdraws Funds from U.S. Bonds and Turns to Gold

Instead of maintaining dependence on U.S. financial instruments, the Central Bank of Brazil has decided to reduce its holdings of U.S. Treasury bonds by up to $61 billion. This money is not left idle but redirected into an asset that the BRICS alliance considers safer: gold. This decision reflects deep concern about the financial state of the U.S. and the urgent need to de-dollarize—that is, to reduce reliance on this currency in international trade.

Gold Reserves Become a Priority in BRICS Strategy

Increasing gold reserves is not an independent initiative of Brazil. It is part of a broader plan within the BRICS bloc, where member countries are working together to create a multipolar financial system, reducing the influence of any single nation over the global economic foundation. Gold, with its widely recognized historical value, acts as a currency unaffected by any national monetary policy, making it an ideal choice for countries seeking to diversify their foreign exchange reserves.

Gold Prices Rise Due to BRICS Countries’ Demand

Recent times have seen a surge in gold prices, with multiple record highs being set. This increase is not accidental but a direct result of significant buying activity from BRICS nations, especially China, India, and now Brazil. The rise in gold prices demonstrates the strength of demand from major economies, despite the market experiencing a short-term correction after reaching the peak. However, the long-term trend remains clear: gold reserves are regarded as an indispensable strategic asset in the treasuries of 21st-century nations.

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