Published March 9, 2024
The United States economy has been engrossed in an inflation fight for the last several years. Although the Federal Reserve has spoken optimistically about its status, that does not appear to be a shared perspective globally. Indeed, amid the BRICS de-dollarization efforts, various central banks are using increased gold reserves as their US dollar defense.
The last year has seen the accumulation of gold reserves increase, mostly as a diversification strategy. Specifically, China, Germany, and Turkey have led a global strategy of safeguarding assets from risks associated with the US dollar’s current state. Subsequently, such a decision could prove beneficial in what would be the United States’ worst-case scenario.
Central Banks Turning to Gold as Diversification Away From the US Dollar
For many investors, gold has become a haven asset. Over the last several months, as the greenback had struggled, the metal increased in value. Yet, that thought process seems to be shared by a host of countries. As de-dollarization becomes a present reality for global economics, this strategy has become even more popular in 2024.
The BRICS economic alliance has not been shy about its stance regarding the US dollar. Its efforts to lessen international reliance on the greenback have been shared by its growing membership. Now, amid those BRICS Actions, various Central Bank throughout the world are using their gold reserves as a US dollar defense.
