In recent news. it has been reported that Russia has indeed confirmed that BRICS will create a gold-backed currency. You should read the article for a more detailed study of the news. Follow us to get all the ideas and the latest news about PKB. To never miss any update, subscribe to our website to receive all the valuable news around the world.
The gold-backed currency of the BRICS countries
It was recently reported that the introduction of a gold-backed currency in the BRICS was a shock wave for the global fiat money system. The news was confirmed by an economist in Russia, to be released in August. It was believed that the BRICS countries could soon launch a viable alternative to the US dollar. The main news was announced by Russia. Significantly, the gold market could see further bullish momentum as the world could see a new type of gold standard. According to the state RT., the Russian government confirmed on Friday that Brazil. Russia, India, China and South Africa, collectively known as the BRICS nations, will introduce a new gold-backed trading currency. An official announcement is expected to be made during the BRICS summit in August in South Africa.
Read on to learn more about what’s new. The recent news adds new momentum to the current trend of de-dollarization taking place in the global economy. Central banks have been flagged to buy gold at a record pace around the world from mid-2022, in part to diversify their reserves against the US dollar. It was also known that a gold-backed coin would be the next evolution in this process. According to analysts, China’s recent gold purchase is an attempt to reduce international costs for the yuan. Similarly, at the same time, the US government’s process of weaponizing the US dollar against Russia for its interference in Ukraine has created some geopolitical uncertainties within nations that are allied to Russia.
The gold-backed BRICS coin was believed to provide significant support for gold, but some analysts also expect it to be a while before the market impact is seen. According to Degussa’s chief economist, the announcement is a step in the right direction and there is still a long way to go before it becomes a reality. However, other analysts remain skeptical of this announcement. Additionally, many analysts are speculating about a new global currency that would challenge the US dollar’s role as the world’s reserve currency.
Categories: Trends
Source: HIS Education