China Expands Gold Sector Involvement

China is reportedly making significant moves in the gold sector.

According to Bloomberg, citing “people familiar with the matter,” the People’s Bank of China (PBOC) is seeking to custody foreign sovereign gold reserves.

In recent months, the Chinese central bank has encouraged other central banks from friendly countries to buy gold and store it within China’s borders. One Southeast Asian country is reportedly interested, as mentioned by Bloomberg’s anonymous sources.

Currently, the PBOC holds the fifth-largest stockpile of gold reserves among all central banks, with 2,298.53 tonnes, as reported by the World Gold Council. The United States leads with 8,133.46 tonnes, followed by Germany (3,350.25 tonnes), Italy (2,451.84 tonnes), and France (2,437 tonnes).

Moreover, Bloomberg has recently reported that China plans to increase the number of ports that can accept “multi-use permits,” aimed at reducing the regulatory burden on gold imports and exports.

The PBOC states this move aims to “enhance vitality and respond to external shocks by improving the business environment at ports” across the country.

Macro investor Luke Gromen recently suggested that China’s rapid gold accumulation serves as an “elegant” solution to counter the yuan’s depreciation while ensuring many citizens do not suffer financially.

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