BRICS gold stockpile grows as dollar slips

Gold’s place in sovereign reserves is strengthening as BRICS members expand their bullion holdings and the dollar’s share of disclosed foreign exchange reserves continues to edge lower, sharpening debate over whether the global monetary system is entering a slower, more fragmented phase of diversification. Market estimates published this week put BRICS+ countries at about 17.4% of official global gold reserves, while core BRICS countries already account for a substantial share led by Russia, China and India.

The shift does not amount to a sudden overthrow of the dollar. IMF data show the US currency still made up 56.77% of global allocated foreign exchange reserves in the fourth quarter of 2025, far ahead of the euro at 20.25%. Yet the direction of travel has become harder to ignore as central banks diversify across gold and a wider mix of currencies, particularly after years of sanctions risk, geopolitical shocks, inflation volatility and questions over long-term fiscal stability in major developed economies.

Gold has benefited from that search for insulation. The World Gold Council says central banks remain significant holders of bullion and account for around a fifth of all the gold mined throughout history. Its latest reserve data, compiled from IMF and other official sources and updated in February 2026, show holdings as of 31 December 2025 for most countries. That stockpiling has been paired with continued official-sector buying, even after prices hit repeated highs through 2025.

Within the BRICS orbit, China remains one of the clearest examples of this strategy. Reuters reported on 7 April that the People’s Bank of China extended its gold-buying run to a 17th straight month, lifting holdings to 74.38 million fine troy ounces by the end of March. World Gold Council research had already put China’s official holdings above 2,300 tonnes by early 2026, with gold rising to about 10% of the country’s total foreign exchange reserves. The steady additions underline Beijing’s preference for reserve diversification without abrupt moves that could destabilise its broader financial position.

India’s reserve profile has also shifted markedly. World Gold Council data show the Reserve Bank of India’s holdings at a record level of a little over 880 tonnes around the start of 2026, with gold’s share of the country’s foreign exchange reserves climbing above 17% as valuation gains combined with earlier purchases. That is a notable change for a country whose reserves were once far more heavily concentrated in foreign currency assets, and it strengthens the argument among emerging-market policymakers that bullion can serve as both hedge and signal of balance-sheet resilience.

Brazil, meanwhile, has become an important part of the story. Reuters reported at the end of March that the Central Bank of Brazil doubled its gold holdings in 2025, pushing the metal to 7.19% of total reserves and making it the second-largest component after the US dollar. At the same time, the dollar’s share in Brazil’s reserves dropped to a record low 72%. That does not imply a break with dollar finance, but it does show how reserve managers are adjusting portfolios to reflect market volatility and a wider spread of geopolitical risks.

South Africa’s official holdings remain comparatively modest at about 125.5 tonnes, while Russia continues to be the bloc’s heavyweight bullion holder with more than 2,300 tonnes by market estimates and public datasets. Saudi Arabia and the UAE, now part of the enlarged BRICS framework, also hold meaningful gold stocks, helping explain why some analysts place BRICS+ above the 17% threshold of world official reserves. The distinction matters: the older five-member BRICS grouping and the expanded BRICS+ format are not interchangeable, and claims about reserve shares can be overstated when that line is blurred.

The “petrodollar cracking” argument also needs careful handling. What is visible so far is not a collapse of dollar dominance in energy trade or reserves, but a broadening of settlement options and a gradual move by some states to reduce exposure to a single financial architecture. IMF reserve data still show the dollar in a commanding lead, and no alternative currency yet matches the depth, liquidity and legal infrastructure of US markets. Gold’s rise, therefore, is less a clean substitute for the dollar than a strategic hedge against a world seen as more politically divided and financially less predictable.