Are BRICS central banks preparing for a US dollar collapse? The question is increasingly relevant as discussions are underway about turning a BRICS accounting unit into a real currency, backed by exchange goods (assets), in preparation for a dollar collapse. The BRICS group of emerging nations has been agitating for a move away from dollar dominance.

Several factors point to a potential shift. The BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, instead of the US dollar, facilitating trade within the bloc without relying on the established dollar-based system. Russia's finance ministry and central bank have been actively involved in these efforts, signaling a strong commitment to de-dollarization.

Emerging market central banks have been at the forefront of this trend, with central bank holdings of dollar-denominated assets having been falling. Understandably so, these nations are seeking greater financial independence and resilience against fluctuations in the US dollar's value. As the central banks of developing countries move away from the dollar in favor of gold and their local currencies, a new monetary order could be taking shape.

The BRICS bloc, led by Russia, is working to create an alternative payment system to reduce dependence on the US and the dollar-dominated financial infrastructure. Furthermore, Central-bank digital currencies could weaken the greenback's role in international payments, potentially accelerating the shift away from the dollar. The implications of these changes for the global economy are significant and warrant close attention.