The standard for trading oil contracts has been in U.S. dollars, but members of the BRICS bloc of nations (Brazil, Russia, India, China, and South Africa) and Saudi Arabia have reportedly been discussing a major change to the international oil industry—specifically, moving from the dollar to alternative currencies.
In addition, on July 7, 2023, Russia state media announced that the BRICS nations were working toward a new trading currency backed by gold. This new currency could challenge the dollar’s place as the standard unit for international trade. A formal announcement of the currency is expected during the BRICS summit in August.
“The BRICS countries have been pursuing a wide range of initiatives to decrease their dependence on the dollar. Over the past year, Russia, China, and Brazil have turned to greater use of non-dollar currencies in their cross-border transactions. Iraq, Saudi Arabia, and the United Arab Emirates are actively exploring dollar alternatives. And central banks have sought to shift more of their currency reserves away from the dollar and into gold.”
—Fortune, June 25, 2023
How would a shift away from the U.S. dollar impact the strength of consumer portfolios?
Click on the video link below for exclusive insights on this topic from Edmund C. Moy, 38th Director of the U.S. Mint and Senior IRA Strategist for U.S. Money Reserve.
Related headlines from around the web:
- Fortune: “How long will the dollar last as the world’s default currency? The BRICS nations are gathering in South Africa this August with it on the agenda”
- Kitco: “Russia confirms BRICS will create a gold-backed currency”
- Reuters: “Countries repatriating gold in wake of sanctions against Russia, study finds”
Don’t wait for gold prices to rise or for the dollar to fall—protect your portfolio with precious metals today.
Gold has historically been used as a hedge against economic uncertainty and market turbulence. As paper-based assets like stocks continue to experience volatility and inflation continues to deflate the dollar’s purchasing power, now may be the perfect time to add wealth protection to your portfolio in the form of physical gold.
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