The BRICS alliance — Brazil, Russia, India, China, and South Africa — has taken a major step in its long-running bid to reduce global dependence on the US dollar. During the 2025 Moscow Financial Forum, the bloc outlined plans for a precious-metals exchange, intended to anchor international trade in gold, platinum, and other key resources rather than the greenback.
The initiative aims to sidestep Western financial systems, challenge dollar-based benchmarks, and offer developing nations an alternative settlement network. But while the proposal signals serious intent, economists warn that BRICS faces a steep climb before any genuine shift in global monetary power can occur.
The BRICS Vision: A Resource-Backed Financial Model
Russia has been the driving force behind the exchange, positioning it as a neutral pricing and clearing platform for metals and minerals currently dominated by Western markets like the London Metal Exchange. The goal is to establish transparent, sanction-resistant trade mechanisms and ultimately back a future BRICS currency with tangible assets.
Proponents argue that BRICS collectively controls a significant share of the world’s critical materials — including 70% of rare-earth reserves, 40% of global oil, and more than 12,000 tonnes of gold. They believe this resource leverage could form the foundation for a “real-value” system less exposed to inflation and political manipulation.
China, meanwhile, continues expanding its Cross-Border Interbank Payment System (CIPS) — a potential backbone for BRICS settlements outside the US-controlled SWIFT network. For many emerging economies, particularly in Africa, such developments promise greater financial sovereignty and reduced exposure to currency volatility.
The Challenges: Trust, Liquidity, and Political Cohesion
Despite the momentum, analysts remain cautious. The US dollar’s strength lies not just in habit but in deep liquidity, legal predictability, and institutional trust. Replicating that ecosystem — complete with functioning bond markets, derivatives, and convertibility — could take decades.
According to Reuters, even some BRICS members like India and Brazil are hesitant to fully embrace a new monetary structure that could alienate Western investors or destabilise their own financial systems. The alliance’s diversity, while symbolically powerful, makes unified policy difficult.
A report by the Atlantic Council noted that over 80% of global foreign-exchange transactions still involve the US dollar, underscoring its entrenched dominance. While the bloc’s trade in local currencies is rising, it remains a fraction of total global volume.
Western Pushback and Systemic Risk
Experts also warn that the United States and its allies will not passively accept a competing monetary order. Possible countermeasures could include expanded sanctions, financial regulatory pressure, and moves to limit Western firms’ exposure to BRICS-linked institutions.
Moreover, many BRICS nations carry heavy dollar-denominated debt, making any abrupt shift risky. Legal, technical, and settlement issues could complicate transitions away from existing systems.
Implications for South Africa
For South Africa, participation in a metals-backed trade system offers both opportunity and caution. The nation’s mining industry stands to gain influence if global commodities begin underpinning new financial instruments. However, its banks and corporations remain tightly integrated with Western systems, meaning any sudden pivot could greatly strain liquidity and investor confidence.
Still, South Africa’s inclusion positions it as a potential regional facilitator for BRICS-based settlement — especially as more African states explore joining the bloc.
Balanced Verdict: Symbolic Step, Not Systemic Change — Yet
BRICS’ move to challenge dollar dominance through precious-metals trading is its most concrete de-dollarisation effort yet. The idea resonates with nations frustrated by sanctions, debt dependency, and Western-centric finance.
However, experts caution that transforming resource wealth into monetary credibility is a long-term process. For now, the initiative is better seen as a strategic signal — an assertion of multipolar intent — rather than an imminent threat to the US dollar’s supremacy.
In short: BRICS is building momentum, but the dollar still rules the game.
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BRICS is developing a precious-metals exchange to trade and settle transactions in gold, platinum, and other resources outside of Western-controlled systems. The goal is to reduce dependency on the US dollar and create a more independent global financial structure.
Several member states have discussed the idea of a gold-backed or resource-backed currency, but no official launch has been confirmed. The metals exchange is considered a first step toward exploring such a system, rather than an immediate replacement for the US dollar.
Experts say it’s unlikely in the short term. While BRICS nations control vast natural resources, the dollar remains dominant due to its liquidity, stability, and global acceptance. The BRICS initiative could, however, gradually diversify trade settlement systems over time.
