In recent news. it was reported that Russia has indeed 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 for all the latest insights and updates on PKB news. To never miss any update, subscribe to our website to receive all the valuable news around the world.
Gold-backed currency of the BRICS Nations
Recently, it was reported that the introduction of the gold-backed currency in the BRICS was a shock wave for the global fiat money system. The news was confirmed by the 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. Russia released the main news. 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. The official announcement is expected to be made during the BRICS summit in August in South Africa.
Read on to learn more about the news. Recent news is adding new momentum to the current de-dollarization trend that is unfolding in the global economy. It was noted that since mid-2022, central banks have been buying gold at record rates around the world, in part to divert their reserve away from the US dollar. It was also revealed that the gold-backed coin is the next evolution in this process. According to analysts, China’s recent gold purchases are an attempt to drive international spending into the yuan. Similarly, at the same time, the US government’s process of weaponizing the US dollar against Russia for interfering in Ukraine has created some geopolitical uncertainties within Russia-allied nations.
The gold-backed BRICS coin was believed to provide significant support to gold, but some analysts also expect it to take 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 continue to have many doubts about the announcement. Additionally, many analysts have been speculating about a new global currency to challenge the US dollar’s role as the world’s reserve currency.
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Source: vtt.edu.vn