The BRICS countries are contemplating the creation of a non-western dominated system of gold trade.
According to a statement by the first deputy chairman of Russia's Central Bank, the traditional trade system based in London has become less relevant. The statement from Sergey Shvetsov comes in the wake of Bank of Russia purchase of almost 187 tons of gold within 10 months of 2017.
«The traditional trade system based in London and partially in Swiss cities is becoming less relevant as new trade hubs are emerging, first of all in India, China, and South Africa,» Shvetsov said. The BRICS member states represent almost three billion people and about 20 percent of the world's GDP.
The BRICS Club
Shvetsov added that the Bank of Russia has already signed a memorandum on development of bilateral gold trade with Chinese colleagues and the regulator plans to take first steps towards formation of a single trade system with the People’s Republic of China next year, according to Russian news agency Tass.
In 2016 in a bid to gain control over the pricing of the precious metal and enhance the nation’s sway in the global bullion market, China launched a Yuan denominated gold benchmark.
