BRICS+ Nations Increase Gold Reserves Amid Declining Dollar Dominance

As of 2025, BRICS+ nations have significantly increased their gold reserves to 17.4% of global totals, up from 11.2% in 2019, amounting to over 6,000 tonnes. This shift is accompanied by a notable decline in the dollar's share of global foreign exchange reserves, which fell to approximately 57%, the lowest since 1994. Central banks collectively purchased 1,237 tonnes of gold in 2025, marking the third consecutive year of purchases exceeding 1,000 tonnes, with participation from over 40 central banks.

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling

The leading contributors to this gold accumulation include Russia, China, and India. Russia holds 2,336 tonnes, China possesses 2,298 tonnes, and India has 880 tonnes. Together, Russia and China account for roughly 74% of the total gold holdings within the BRICS+ bloc. Brazil also made a notable return to gold purchases in September 2025, acquiring 16 tonnes, its first purchase since 2021.

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling

This trend reflects a strategic pivot by central banks towards gold, driven by concerns over the security of dollar-denominated assets. The increase in gold reserves is seen as a response to geopolitical tensions, with central banks recognizing that gold stored in domestic vaults cannot be frozen or confiscated. The World Gold Council anticipates continued strong demand, projecting central bank purchases of 750 to 850 tonnes in 2026.

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling

The shift towards gold is not merely speculative; it is a deliberate policy decision by sovereign buyers. The increase in gold purchases is a direct response to the perceived risks associated with holding dollar reserves, particularly after events that demonstrated the potential for asset seizure. Analysts suggest that if countries like Saudi Arabia or the UAE formally increase their gold allocations, it would further validate the trend initiated by Russia and China.

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling

Despite the growing trend, some analysts caution against over-reliance on gold as a reserve asset. Critics argue that while gold provides a hedge against currency fluctuations, it does not generate income like other assets. Additionally, the volatility of gold prices can pose risks to central bank reserves.

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling

While the overall trend indicates a robust increase in gold purchases, there is uncertainty regarding the future trajectory of the dollar's share in global reserves. Some forecasts suggest that the dollar will continue to decline, while others indicate potential stabilization. Furthermore, the lack of recent public reporting by China on its gold reserves raises questions about the actual scale of its holdings.

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling

• “That action sent a clear message to every central bank holding dollar-denominated assets: reserves stored in another country’s financial system can be seized.” — Analyst

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling

• “The dollar remains dominant, but the direction is clear: central banks are building positions in an asset no foreign government can freeze, at a pace not seen in half a century.” — Market Expert

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling

Looking ahead, the continuation of this trend will depend on several factors, including potential increases in gold holdings by new BRICS+ members and further declines in the dollar's reserve share. Analysts will closely monitor upcoming IMF COFER releases for insights into these dynamics.

BRICS Gold Reserves Hit 17.4% as the Dollar’s Share Keeps Falling