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Central banks, particularly those within the BRICS nations (Brazil, Russia, India, China, and South Africa), are actively increasing their gold reserves as a strategic move to lessen their reliance on the US dollar. This “de-dollarization” effort is a multi-faceted strategy driven by various geopolitical and economic considerations.
Here’s a breakdown of this trend, corroborating and expanding on your points:
* Significant Gold Accumulation by Central Banks: Central banks globally have been net buyers of gold for several consecutive years, with purchases exceeding 1,000 tonnes annually in 2022, 2023, and 2024. This trend has continued into 2025, with Q1 2025 net buying at 244 tonnes, comfortably above the 10-year quarterly average. BRICS nations are prominent among these buyers.
* People’s Bank of China (PBOC) as a Key Player: As you mentioned, the People’s Bank of China has been a consistent and substantial buyer of gold. Reports indicate they acquired over 200 tons in 2024 and have continued their gold-buying spree into 2025, with reported official holdings reaching 2,296 tonnes by June 2025, making them the world’s 6th largest sovereign gold reserve holder. This methodical acquisition strategy aims to reduce dependence on US dollar-denominated assets.
* Decreasing US Treasury Holdings: Hand-in-hand with gold accumulation, many central banks, including China’s, have been gradually decreasing their holdings of US Treasury bonds. As of January 2025, Chinese entities held approximately $769 billion in US Treasury securities, a notable decrease from over $1 trillion in 2022. This shift reflects a strategic move away from dollar-centric reserves.
* Drivers of De-Dollarization:
* Geopolitical Risks and Sanctions: The freezing of Russia’s foreign exchange assets in 2022 underscored the vulnerability of ledger-money and highlighted gold as a “sanction-proof” asset when held domestically. This has spurred other nations to diversify their reserves.
* Portfolio Diversification: Beyond geopolitical concerns, central banks are diversifying their portfolios to enhance resilience against market fluctuations and to protect against potential downside risks to the US dollar.
* Currency Bloc Hedging: BRICS members openly discuss settling trade in local currencies, and gold provides a neutral “bridge” asset for these transactions, further reducing reliance on the dollar. Initiatives like BRICS Pay aim to facilitate transactions in local currencies, bypassing traditional dollar-based systems.
* Challenging US Dollar Hegemony: The collective actions of BRICS nations reflect a broader ambition to create a more multipolar global economic order, challenging the long-standing dominance of the US dollar in international trade and finance. While a direct replacement for the dollar is not immediately anticipated, the increasing use of other currencies and gold can gradually erode its hegemony.
This shift by central banks, especially those in BRICS, represents a deliberate and strategic effort to bolster financial sovereignty and diversify away from a singular reliance on the US dollar, signaling a continued evolution in the global reserve currency landscape.

Video courtesy of CSOB

Video courtesy of CSOB