BRICS Currency to be Linked With Gold, Says Economist: Could This Challenge the US Dollar?

The possibility of a BRICS currency backed by gold is generating significant buzz. Could this be a viable alternative to the US dollar in international trade? Speculation is rife after BRICS nations indicated they are considering a common currency potentially anchored by gold.

An economist says, for making the new currency as good as gold and a truly sound currency, it must be convertible into gold on demand. But whether this is the actual plan remains to be seen. The idea is gaining traction as nations seek alternatives to traditional financial systems.

Reports suggest an official announcement regarding a BRICS currency will be made at the bloc's summit in Johannesburg, South Africa, in August. This has further fueled the debate and intensified scrutiny of the potential impact on the global economy.

Gold Backing: A Key to Success?

The concept of linking the BRICS currency to gold is central to its perceived credibility. A gold-backed currency could offer stability and potentially hedge against inflation, issues that have plagued traditional fiat currencies.

Jim Rickards, a recognized economist and author, claims that the BRICS do not need to create a single currency to facilitate their commercial exchanges. In his view, gold provides a different avenue. However, the allure of a unified BRICS currency persists.

BRICS Currency: Timeline and Potential Impact

While a specific date is not confirmed, 19 de sept. de 2025 has appeared in some speculation, underscoring the ongoing anticipation. The creation of a BRICS currency backed by gold has the potential to reshape the global financial landscape, challenging the dominance of the US dollar and offering new avenues for international trade. The economist’s perspective on convertibility being critical for soundness highlights the complexities involved.