A Silent Signal: Xi’s No-Show at BRICS and the Currency That Wasn’t

The latest BRICS summit drew attention as much for what wasn’t said as for what was—and for who didn’t show up.

Chinese President Xi Jinping’s unexpected absence from the summit’s opening session, where Commerce Minister Wang Wentao took his place, raised eyebrows in diplomatic and financial circles alike. The group continues to promote a multipolar world and an alternative to the US dollar, but momentum behind a gold-backed or non-dollar BRICS currency appears to have stalled. Xi’s silence may speak to more than scheduling—it could hint at diverging priorities within BRICS, and a subtle shift in China’s approach to global monetary change.

Gold-Backed Currency on Hold?

For years, BRICS has advocated reducing reliance on the US dollar, both in trade and through the longer-term idea of a new reserve currency, possibly commodity-backed. A gold-backed BRICS currency has been widely speculated, particularly given Russia and China’s ongoing gold buying and efforts to reduce their exposure to the US dollar.

Yet despite mounting anticipation throughout 2023 and early 2024, the latest summit produced no formal announcement. The lack of progress, alongside Xi’s absence, has raised questions about how coordinated the bloc remains in terms of monetary strategy.

China’s recent diplomatic pivot may be a factor. On 26 June, former US President Donald Trump stated, “We just signed with China yesterday,” referring to renewed trade arrangements that suggest a stabilising of relations between the two powers. For China, prioritising trade with the US may offer a more immediate boost to an economy under pressure, rather than pushing aggressively on de-dollarisation for now.

Strategic Patience Over Public Moves

Despite public messaging, BRICS remains a diverse group with differing economic models, monetary systems and political agendas. The lack of consensus on a joint currency—let alone a gold-backed one—reflects that complexity.

For Beijing, a more cautious approach now appears to make sense. Restoring export flows and containing financial volatility likely takes precedence, even if the long-term goal of monetary diversification hasn’t changed.

Rather than a retreat, this looks more like a tactical pause. Timing and leverage matter. A slower, less public strategy allows China to quietly accumulate gold, strengthen trade ties, and maintain flexibility as the global balance continues to shift.

The Quiet Gold Trade Continues

While the headlines were light on announcements, the real message may be in the data. The People’s Bank of China has now recorded uninterrupted monthly gold purchases since late 2022, adding over 300 tonnes. It’s a clear, consistent signal: diversification is still very much underway, just without the fanfare.

As China softens its outward posture and rebuilds US trade links, the underlying gold strategy hasn’t skipped a beat. Gold remains a cornerstone of resilience and optionality in a shifting financial landscape.

Whether a BRICS currency emerges in the near term or not, the case for physical gold—at both the sovereign and individual level—remains unchanged.

For investors, the lesson is clear: while geopolitics may take a breath, strategy doesn’t. And gold remains the asset of choice for those planning beyond the next summit.