BRICS To Intro Gold-Backed Reserve Currency

7.10.23 - BRICS To Intro Gold-Backed Reserve Currency

The Gold Standard Is Back: BRICS To Intro Gold-Backed Reserve Currency -Quoth the Raven

Remember back when the Russia/Ukraine war had just started, and I predicted that Russia and China would launch their own gold backed currency?

At the time, this idea sounded completely foreign, and I was ridiculed for bringing it up. Today, it just become [sic] reality. 41+ countries look like they could be returning to a gold standard.

The images plastered all over RT this weekend had headlines like "New Money, New World" and "Gold Standard Will Be Of Great Benefit To Strengthening New Singly Currency".

"The official announcement is expected to be made during the BRICS summit in August in South Africa," Kitco reported over the weekend.

"At first glance, a new transaction unit, backed by gold, sounds like good money - and it could be, first and foremost, a major challenge to the US dollar's hegemony," Thorsten Polleit, chief economist at Degussa, said.

He continued: "For making the new currency as good as gold, a truly sound currency, it must be convertible into gold on demand. I am not sure whether this is what Brazil, Russia, India, China and South Africa have in mind. Using gold as money, the unit of account would be a true game changer, no doubt about it. It could lead to a sharp devaluation of many fiat currencies vis-a-vis the yellow metal (including the BRICS fiat currencies), and it could catapult up goods prices in terms of fiat currencies. It could be a shock to the global fiat money system. I am not sure that this is what the BRICS wish to achieve."

The official announcement of the new currency is expected in August during the BRICS summit in South Africa.