China's Centralized Control Over Gold and the Shift in Global Monetary Power

In 2025, China's strategic accumulation of gold reserves has accelerated, signaling a deliberate effort to reshape global monetary systems and reduce reliance on the U.S. dollar. The People's Bank of China (PBoC) has extended its gold-buying streak to 13 consecutive months, adding 0.9 metric tonnes in November alone to reach a total of 2,305 metric tonnes. This represents an increase in gold's share of China's foreign exchange reserves from 5.5% in December 2024 to 8.3% in November 2025. Such actions underscore a broader strategy to diversify reserves and hedge against the risks of dollar dominance, particularly amid geopolitical tensions.

China's gold strategy is not confined to domestic reserves. The country has attracted foreign central banks, such as Cambodia, to store gold in its vaults, expanding its influence in global bullion markets. Unofficial estimates suggest China's gold reserves may exceed 5,000 metric tons, far surpassing the officially reported 2,113 tons. This discrepancy highlights the PBoC's role in building a robust gold-backed infrastructure, including the Shanghai Gold Exchange (SGE), which has launched offshore vaults and CNH-denominated contracts to attract international investors according to market analysis.

The BRICS alliance has further amplified China's influence through the development of a gold-backed digital trade currency called the "Unit." Comprising 40% physical gold and 60% BRICS currencies, the Unit aims to facilitate cross-border trade without reliance on the U.S. dollar. This initiative, managed on the Cardano blockchain by the International Research Institute for Advanced Systems (IRIAS), reflects a coordinated effort to de-dollarize global commerce and create a neutral settlement tool for BRICS nations. By leveraging gold and national currencies, the Unit seeks to insulate trade from Western financial systems while promoting financial sovereignty according to analysts.

Complementing the Unit is the BRICS gold corridor, a network of vaults and payment systems enabling dollar-free trade settlements. Physical gold vaults in Saudi Arabia, Singapore, and Malaysia support regional trade and credit lines, while China's gold reserves-exceeding 2,291.6 tonnes as of Q3 2024-serve as a critical asset for collateral and liquidity. This infrastructure reduces dependency on traditional clearing networks and positions BRICS nations to conduct trade independently of U.S. banks.

China's strategic reallocation of assets is part of a larger global trend. Central banks added 1,037 tonnes of gold to reserves in 2022, the highest annual total since 1967, with emerging markets driving much of this growth. Analysts like Jeff Currie argue that China's gold accumulation enhances trust in the yuan and strengthens its role as a global settlement currency. The PBoC's digital yuan (e-CNY), potentially backed by physical gold, could further reinforce this shift, offering a credible alternative to the dollar in international transactions.

The implications for global monetary systems are profound. By building gold-backed alternatives, China and its BRICS partners are challenging the dollar's hegemony and fostering a multipolar financial order. The Unit's design, with real-time transaction finality and programmable money capabilities, introduces a new paradigm for trade settlements. Meanwhile, the gold corridor's emphasis on asset-backed liquidity ensures that BRICS nations can weather geopolitical disruptions without relying on Western financial systems according to market reports.

In conclusion, China's centralized control over gold and its collaboration with BRICS nations are reshaping the global monetary landscape. Through strategic asset reallocation, digital innovation, and infrastructure development, these initiatives signal a long-term shift toward a more diversified and resilient financial architecture. As the PBoC continues to expand its gold reserves and the BRICS Unit gains traction, the era of dollar dominance may be drawing to a close.