The BRICS’ New Unit Currency Is A Good Step Forward

Source: Forbes | Original Published At: 2025-12-12 14:27:41 UTC

Key Points

• BRICS introduced a new reserve currency called 'Unit' composed of 40% gold and 60% basket of member countries' fiat currencies
• The design aims to balance gold-backed stability with existing fiat systems to reduce foreign exchange volatility
• Reserve assets will include 60% government bonds from participating nations alongside gold bullion
• Proposed mechanism allows gradual transition to potential gold-only standard if fiat components depreciate over time
• Inspired by China's 'crossing the river by touching the stones' incremental reform strategy