China suspected of stockpiling gold to ‘reduce dependence on dollar’
In the first week of November, the World Gold Council’s (WGC) report covering last quarter’s global gold demand showed that central banks around the world purchased nearly 400 tonnes of gold in the third quarter of 2022. pointed out. The WGC researchers also found “significant estimates of unreported purchases.” A report released on November 22 said the mysterious gold buyer was likely China, which also claimed to have “purchased significant amounts of gold from Russia.”
Q3 mystery gold buyer likely to be China, market analyst says
China is suspected of stockpiling gold to “reduce its reliance on the dollar,” according to a report published by Japan’s Nikkei news agency. The Nikkei report follows a recent survey released by the World Gold Council (WGC) that showed global central banks bought large amounts of gold in the last quarter.
At the time, the WGC report further referred to “unreported purchases” and mysterious buyers who obtained significant amounts of precious metals. However, the WGC’s quarterly report does not reveal the identity of the mysterious gold buyer.
A Nikkei article suggests the mysterious buyer is believed to be China, and the move is meant to cut China’s dependence on the US dollar.Precious metals analyst Koichiro Kamei said , told the magazine in a meeting with a Nihon Keizai Shimbun reporter that the scale of gold purchases by mystery buyers was “unprecedented.”
Market analyst Itsuo Toyoshima believes the country likely bought a large amount of gold from the Russian Federation. “China likely bought a substantial amount of gold from Russia,” Toshima told a Nikkei reporter.
This is not the first time China has kept its gold purchases secret, as China has not actively reported its gold holdings and purchases since 2019.
China’s gold reserve program is one of many moves that may aim to move the country’s finances away from the US dollar. At the end of October, economists discussed the possibility of Russia and China developing a gold-backed currency that could undermine the dollar.
Additionally, Russia and members of the BRICS countries have revealed plans to create a new international reserve currency in June. At that time, Saudi Arabia also hoped to join the BRICS.
At the end of October, Robert Kiyosaki, author of Rich Dad Poor Dad, cited Saudi Arabia’s desire to join the BRICS as one reason he thought the US dollar was toasting. . The Nikkei article also noted that the Chinese government is “letting go of U.S. Treasuries,” with China recently dumping billions of dollars in U.S. Treasuries.
Market analyst Toyoshima told Nikkei reporter Munemasa Horio that the People’s Bank of China has likely purchased some of the more than 2,000 tonnes of gold held by the Central Bank of the Russian Federation.
According to WGC statistics, as of January 2022, the Russian Federation held approximately 2,298.5 tonnes of gold. China is believed to be her sixth-largest country in terms of gold holdings, while Russia is ostensibly her fourth-largest in Europe. of gold reserves.
What are your thoughts on reports that China is stockpiling gold to reduce its dependence on the US dollar? Let us know your thoughts on the matter in the comments section below.
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China suspected of stockpiling gold to ‘reduce dependence on dollar’
Source link China suspected of stockpiling gold to ‘reduce dependence on dollar’
