For decades, the US dollar has sat at the very center of the global financial system. It has dominated trade invoicing, commodity pricing, cross-border payments, and central bank reserves. This dominance gave the United States unparalleled economic advantages—from cheaper borrowing to the ability to impose far-reaching financial sanctions.
But recent data suggests that this system is no longer unquestioned. According to a warning issued by banking giant ING, BRICS countries are quietly exiting the US Treasury market, while simultaneously increasing their gold holdings and experimenting with alternative settlement mechanisms. This shift does not signal an imminent collapse of the dollar—but it does point to a gradual, strategic erosion of its dominance.
BRICS Selling US Treasuries: The Numbers That Matter
One of the clearest indicators of this shift is the steady decline in US Treasury holdings among BRICS nations. In October 2025 alone, three major BRICS economies reduced their exposure significantly:
India: –$12 billion
China: –$11.8 billion
Brazil: –$5 billion
Together, these sales total $28.8 billion in a single month.
According to ING, this is not a one-off event. Instead, it reflects “an enduring trend of declining Treasury holdings among BRICS countries.” Across the broader foreign official sector, holdings of US Treasury bonds and notes fell by $22 billion in October, partially offset by a $14 billion rise in short-term T-bill holdings.
China’s Treasury holdings dropped to $688.7 billion, the lowest level since 2008. This represents a nearly 50% decline from its 2013 peak of $1.3 trillion. India’s holdings have also fallen sharply—from around $240 billion earlier in 2025 to close to $190 billion by late 2025.
Importantly, this sell-off has been gradual and non-disruptive. ING notes that private-sector investors, including hedge funds and institutions, have stepped in to absorb much of the supply, keeping overall foreign holdings relatively stable.
Why BRICS Countries Are Reducing Dollar Exposure ?
The motivations behind this shift are both economic and geopolitical.
First is de-dollarization and reserve diversification. Since 2022, the use of sanctions, asset freezes, and SWIFT exclusions—particularly against Russia—has transformed the dollar-based financial system into a geopolitical weapon. For many countries, this has raised concerns about future vulnerability. Even nations not currently under sanctions are reassessing the risks of excessive dependence on US-controlled financial infrastructure.
Second are US fiscal concerns. America’s national debt continues to rise rapidly, and credit rating downgrades have increased unease about long-term debt sustainability. In such an environment, gold appears increasingly attractive as a reserve asset with no counterparty risk.
In India’s case, ING analysts note an additional factor: foreign exchange intervention. The Reserve Bank of India has sold Treasuries to obtain dollars for stabilizing the rupee during periods of depreciation pressure, alongside broader geopolitical considerations.
Gold Takes Center Stage
While BRICS countries reduce exposure to US debt, they are doing something else at the same time—buying gold.
Collectively, BRICS nations now hold more than 6,000 tonnes of gold, accounting for nearly 50% of global official gold reserves. Russia, China, and India dominate these holdings, with India alone holding around 880 tonnes.
Gold offers what dollar-denominated assets cannot: immunity from sanctions, independence from foreign monetary policy, and long-term value preservation. In an era of financial weaponization, gold has re-emerged as strategic insurance rather than a relic of the past.
The Gold-Backed “Unit” and the Search for Alternatives
Adding to this trend is the launch of a pilot project known as “The Unit”—a digital settlement instrument partially backed by gold. Developed by a Russian-linked research institute and discussed within BRICS-aligned policy circles, The Unit is not a new BRICS currency. Instead, it functions as a unit of account for cross-border trade settlements, operating outside the US dollar and SWIFT system.
Roughly 40% of its value is linked to gold, with the remaining 60% tied to a basket of BRICS currencies. Built on a permissioned blockchain, it aims to enable sanction-resistant trade without requiring BRICS countries to agree on a single shared currency.
This initiative reflects growing interest in collateral-backed and hybrid settlement systems, designed to reduce reliance on Western financial rails while maintaining flexibility.
What This Means for the Dollar ?
ING emphasizes that the US dollar remains “surprisingly resilient.” Private investors continue to buy Treasuries, and recent US inflation data has supported expectations of gradual Federal Reserve rate cuts in 2026 rather than abrupt policy shifts.
However, the long-term direction is clear. Central banks globally held about 72% of reserves in dollars in 2001. By 2025, that figure has fallen to 56.3%.
This is not the end of dollar dominance—but it is a slow rebalancing of global finance. As BRICS countries reduce concentration risk, accumulate gold, and build alternative settlement systems, the world is moving toward a more multipolar monetary order, where the dollar remains important—but no longer unquestioned.