The People's Bank of China, the country's central bank, has continued to increase its gold reserves for the 21st consecutive month.
According to Yonhap News Agency, as of the end of July, the central bank's gold reserves rose by 640,000 ounces (approximately 19.9 tons) from the previous month, reaching a total of 76.08 million ounces. This marks the largest monthly increase since October 2023.
The People's Bank has been increasing its gold reserves monthly since November 2024. This move is interpreted as an effort to reduce dependence on dollar assets and diversify its holdings amid escalating U.S.-China competition.
However, the total increase in gold reserves over the past 21 months amounts to 3.28 million ounces (about 102 tons), which is only about one-third of the increase during the previous 18-month streak.
Additionally, amid rising volatility in gold prices, the valuation of the gold held by the bank as of the end of July has dropped nearly 20% compared to its peak in February, according to Caixin.
Meanwhile, as of the end of July, China's foreign exchange reserves stood at $3.4188 trillion (approximately 4,824 trillion won), reflecting a 0.07% increase from the previous month. Authorities noted that fluctuations in the foreign exchange reserves were influenced by the decline in the U.S. dollar index and changes in global financial asset prices.
* This article has been translated by AI.
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