China Expands Gold Purchases for 16 Consecutive Months... Holdings Reach 74.2 Million Ounces

Amid ongoing instability in the Middle East, it has been revealed that the People's Bank of China, the central bank of China, increased its gold holdings for 16 consecutive months through last month.

According to China Central Television (CCTV) and other sources on March 7 (local time), the People's Bank of China announced that as of the end of February, its gold reserves stood at 74.22 million ounces, up by 30,000 ounces from the previous month.

The People's Bank of China had previously made net purchases of gold for 18 consecutive months through April 2024, and continued this trend by buying gold for another 16 consecutive months from November of the same year through February this year.

Gold bars and silver bars are placed at Jeongin Jewelry in Jongno-gu, Seoul, on the 25th, amid precious metal prices such as gold and silver reaching record highs. Photo by Yonhap News

The assessed value of the gold held by the People's Bank of China was $387.59 billion (about 574 trillion won), an increase from the previous month's $369.58 billion (about 548 trillion won).

This expansion of gold holdings by China, as part of its asset diversification efforts, is believed to be influenced by several factors: concerns over the massive U.S. national debt, apprehensions about the independence of central banks, and declining trust in dollar-denominated assets.

Meanwhile, the State Administration of Foreign Exchange of China reported that as of the end of February, foreign exchange reserves amounted to $3.4278 trillion (about 5,083 trillion won), up 0.85% from the previous month, marking seven consecutive months of growth.

The State Administration of Foreign Exchange explained that the increase in foreign exchange reserves was due to a combination of factors, including exchange rate fluctuations resulting from a rise in the dollar index and changes in the prices of major financial assets.

This content was produced with the assistance of AI translation services.