BRICS member countries have "answers" about de-dollarization, revealing the reason for increased gold purchases

Recently, Indian Finance Minister Nirmala Sitharaman affirmed that the Reserve Bank of India (RBI) is not increasing its gold reserves to replace the US dollar or any other international currency.

India's Ministry of External Affairs recently said that the country has no policy or strategy regarding de-dollarization. (Source: Mint)

Speaking in the Indian House of Representatives, Ms. Sitharaman said that the RBI's gold purchase was part of a strategy to balance foreign exchange reserves, not a sign of looking for an alternative payment mechanism to the US dollar.

"Gold remains a part of the RBI's reserves but the purchase of the precious metal is not intended to replace any international currency," the minister stressed.

Ms Sitharaman's statement came after MP Manish Tiwari asked: "Is the move to gold a sign of looking for an alternative payment mechanism to the US dollar?"

In 2006, gold accounted for just 6% of global foreign exchange reserves, but by 2024, that figure had risen to 11%. China, India, Poland, Türkiye and many other countries are accumulating gold at a rapid pace.

Minister Sitharaman admitted that the increased demand for gold is not only due to central banks, but also due to the hoarding habits of Indians.

Meanwhile, the Indian Ministry of External Affairs recently also said that the country has no policy or strategy related to de-dollarization.

US President Donald Trump has warned that countries around the world are looking for alternatives to the US dollar, especially the BRICS group of leading emerging economies .

"If BRICS continues to promote transactions in their own currencies or use gold instead of USD, the US may have strong countermeasures, including imposing 100% tariffs on goods," Mr. Trump declared.

Source: https://baoquocte.vn/nuoc-thanh-vien-brics-co-cau-tra-loi-ve-phi-usd-hoa-he-lo-nguyen-nhan-tang-mua-vang-304577.html