Central Bank Gold Policies – People’s Bank of China
 Since the early 2000s, China’s central bank, the People’s Bank of China, has pursued an ambitious gold accumulation strategy which has seen its officially reported gold reserves increase from less than 400 tonnes of gold to over 1800 tonnes. There is much secrecy surrounding many aspects of the Chinese gold reserves. While Chinese government and central bank officials will gladly explain in public announcements as to how and why China views gold as a strategic monetary asset, the data on where the Chinese State sources its gold reserves and where it stores them is less forthcoming. There is also a view that the Chinese State may have accumulated far larger gold reserves than it has reported, through the use of buying by other state entities as well as by Chinese commercial banks. What is clear is that given China’s mammoth foreign exchange reserves and the need to diversify these reserves, continued gold purchases by the Chinese State seem assured. Continue reading… |
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