17 July 2023
Russia’s announcement of a new gold-backed trade currency at the BRICS meeting in Johannesburg on August 22-24, 2023, has been largely overlooked by mainstream media. However, the significance of this development should not be underestimated. China and Russia are working to consolidate their trade partners into a formidable bloc and provide a superior alternative to the US dollar. The groundwork for the new currency has been laid, and it is more advanced than commonly believed. Both countries aim to destabilize the dollar and escalate the financial war against the US and NATO. The proposed gold-backed currency for BRICS will weaken the dollar and benefit nations like Iran. The move away from fiat currencies to gold has been evolving for some time, with a shift of bullion from the West to the East. Central banks in Asia have been accumulating gold reserves, signaling their intention to secure currency values. The deteriorating relationship between Russia and the West, along with the conflict in Ukraine, has added impetus to establishing a gold-backed trade currency. The plan is part of a larger initiative that may include other countries and merge various organizations. China sees the attack on the dollar as a way to protect emerging economies from potential US sanctions and maintain stability. Russia views it as a means to undermine the dollar’s credibility and weaken the military capability of the Western alliance. Designing a gold-backed currency involves establishing an issuing entity and securing physical gold. While the exact details and timeline are yet to be confirmed, the developments indicate a significant shift away from the dominance of the US dollar and could reshape the global financial landscape. Monitoring these developments is crucial as they may unfold more rapidly than anticipated, potentially rewriting macroeconomics.