China built the Shanghai Gold Exchange, which is already the biggest physical gold marketplace in the world. The 'gold corridor' is a network of vaults across the BRICS countries that will allow those countries that hold the yuan to exchange it 1:15 for physical gold. China's currency will have trust that has been lost with the USD. Gold has been reclassified as a Basel 3 Tier 1 Asset that counts the same as cash or treasuries on a bank's balance sheet. Gold is likely to be upgraded again to what's called an HQLA, a high quality liquid asset. That one change can unlock gold's full potential that will let countries use it for something called repo and financing, which is the foundation of the entire financial system.

The 'gold corridor' is a network of vaults across the BRICS countries that will allow those countries that hold the yuan to exchange it 1:15 for physical gold. China's currency will have trust that has been lost with the USD. Gold has been reclassified as a Basel 3 Tier 1 Asset that counts the same as cash or treasuries on a bank's balance sheet. Gold is likely to be upgraded again to what's called an HQLA, a high quality liquid asset. That one change can unlock gold's full potential that will let countries use it for something called repo and financing, which is the foundation of the entire financial system.

If gold becomes HQLA, countries will not need US dollars to finance their economies anymore. The gold corridor vaults make the metal accessible for countries trading in yuan. China plans to price gold at an average rather than a daily price to make it less volatile. China will help developing nations that need infrastructure by giving them loans based on their resources. China then gets to finance development and build influence, helping developing countries to skirt the West, the IMF, and the International Monetary Fund while using gold as a high quality liquid asset.