Published: 2019.03.11. China: more gold - less dollars

China: more gold - less dollars - Preview

According to recently published information, the Central Bank of China bought almost 12 tons of yellow precious metal in January of the current 2019. The country's foreign exchange reserves, on the contrary, decreased over this period by $ 80 billion.

Compared with the previous month, the growth of Chinese gold amounted to 380.000 ounces, that is, by 11.81 tons. It is worth noting that after two years of silence regarding its gold reserves, China unexpectedly for analysts publishes data on them for two months in a row.

China’s total international reserves as of January 2019 decreased by 2.5% (or $ 80 billion) to $ 3,087.92 billion. At the same time, the share of gold in them is 2.56%.

A significant decrease in foreign exchange reserves indicates an outflow of capital from China. In this case, the Central Bank sells foreign currency, usually the US dollar. Thus, it turns out that China's gold reserves are growing, and foreign exchange reserves are decreasing.