Despite the earth shattering development of a new BRICS currency to rival the dollar, Western mainstream news media is generally silent on the matter. A rival reserve currency The hegemony of the US dollar as the world’s reserve currency has remained intact since the Bretton Woods agreement in 1944. However, the average citizen in the West is probably not aware that a group of countries termed the BRICS (Brazil, Russia, India, China, South Africa) is about to announce a new rival reserve currency, with the likelihood that it will be backed by gold. The announcement is expected to take place at the BRICS summit, in late August, only a matter of weeks away, and none of the mainstream media outlets in the West have reported on what has the potential to be the biggest monetary change since Bretton Woods. Backlash against the dollar The weaponisation of the dollar in response to the Russian invasion of Ukraine was seen by many countries as a move that could potentially be used against them in the future, and so a move away from the dollar has begun. This rebellion against US hegemony has undoubtedly been led by Putin, but has the backing of the other BRICS nations and countries that are in the process of joining them, including Saudi Arabia, and the Gulf Cooperation Council among others. Gold backing Originally, the BRICS currency was to be backed by a basket of commodities, which included gold, but according to Alistair Mcleod, Head of Research at GoldMoney.com, this would probably not work, and therefore gold on its own is likely to be that backing. Therefore, the flow of gold from West to East over recent decades can certainly be accounted for, along with the increase of gold mining production in China and Russia. With as many as 41 countries either joining or expressing interest in joining the BRICS trading bloc, the combined populations and GDP would be equal to more than half of the world and would be far bigger than that of the Western alliance. The West needs to wake up This introduction of a new rival reserve currency is not likely to usurp the dollar’s position any time soon. However, the attraction of a currency that is actually backed by a real asset, instead of the dollar, which is printed out of thin air and has no backing at all, might be anticipated to grow steadily over time. Such a development should greatly alarm the West. Media blackouts on the situation should not be the alternative to free and open dialogues on such a critical evolution in the global monetary system. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
