Gold is considered a crucial element in diversifying a central bank’s foreign reserves because it bears little correlation with other assets, such as currencies and bonds.
While many are monitoring the developments in BRICS, the United States continues to hold the largest stockpile of gold reserves in the world by a considerable margin.
Zimbabwe has had a long history of economic instability. From 2004 until 2009 the country experienced five years of hyperinflation.
More than ten years later, the economy is Zimbabwe is still in shambles. The Zimbabwe dollar was reintroduced in 2019. More periods of high inflation quickly followed.
Brazil’s international dollar currency reserves lost over $37.5 billion in from 2021 in 2022 due in large part to lower returns amid the US Federal Reserve’s rate hikes and dollar manipulation. While the country’s central bank reported gold holdings are valued at roughly $7.602 billion.