Chinese gold reserves are now stated as being some 33.89 million ounces - or just over 1,000 tonnes, making it the world's sixth largest holder of gold after the US, Germany, the IMF, France and Italy - excluding, though, the 1,100 tonnes held in the SPDR Gold Trust ETF.
Firstly, it is pointed out that the purchases over the past six years had been made by the Chinese State Administration of Foreign Exchange (SAFE) rather than by the Peoples Bank of China (PBOC), which is why the amount of gold had not appeared in China's official reserve figures. Now though, the holding has been transferred to the PBOC and hence the announcement. The gold has been added to the monetary reserves held by the Central Bank.
While this may not be the proverbial opening of the floodgates, it does suggest that the PBOC, and other Central Banks may become net purchasers of gold in the years ahead, rather than net sellers as has been the case of late.
Firstly, it is pointed out that the purchases over the past six years had been made by the Chinese State Administration of Foreign Exchange (SAFE) rather than by the Peoples Bank of China (PBOC), which is why the amount of gold had not appeared in China's official reserve figures. Now though, the holding has been transferred to the PBOC and hence the announcement. The gold has been added to the monetary reserves held by the Central Bank.
While this may not be the proverbial opening of the floodgates, it does suggest that the PBOC, and other Central Banks may become net purchasers of gold in the years ahead, rather than net sellers as has been the case of late.
No comments:
Post a Comment