by Craig Hemke, Sprott Money:
BRICS Summit 2024: Will a New Gold-Backed Currency Challenge the U.S. Dollar?
The annual summit meeting of finance and prime ministers of the BRICS nations is scheduled for next week. There have been rumors of a plan to offer an alternative currency for use in trade between member nations. Will this happen? And will that “currency” include a gold anchor?
The idea of a “dollar alternative” has been discussed quite frequently over the years since The Great Financial Crisis of 2008. The need for a financial structure that operates outside of the U.S. dollar reserve currency system has seemingly accelerated over the past two years after the G7 reaction to Russia’s invasion of Ukraine. If anything, the events of 2022 have spurred on central bank gold demand, as you can see in the charts below: