China’s Gold Reserves Continue to Increase for the 17th Consecutive Month
China has once again increased its gold reserves for the 17th consecutive month, according to official data released by the People’s Bank of China on April 7th. As of the end of March, the bank held a total of 72.74 million ounces (2,262 tons) of gold, an increase of 160,000 ounces, or about 5 tons, compared to February.
This continuous growth in gold reserves is a trend that has been observed not only in China but also in other central banks around the world. The World Gold Council, with China and India taking the lead, reported that central banks globally have been adding to their gold reserves in February, marking the 9th consecutive month of growth.
On the same day, China’s State Administration of Foreign Exchange announced that the country’s foreign exchange reserves reached $3.246 trillion by the end of March, an increase of $19.8 billion, or 0.62%, compared to the previous month. This is the highest level since December 2021.
Vuong Thanh, Chief Macroeconomic Analyst at Golden Credit Rating in China, believes that with the increasing volatility of US bond yields, the People’s Bank of China’s decision to continue increasing its gold holdings will help sustain and increase the value of its reserve assets. This move also helps establish a solid foundation for the internationalization of the Chinese yuan.
Overall, the growing gold reserves indicate the Chinese central bank’s emphasis on traditional safe-haven assets and national financial security in the face of increasing global market uncertainty.