Today, China's total gold reserves are 63.67 million ounces, which is about $112 billion.
China has released information about its gold reserves, as it intends to reduce the share of assets in US dollars.
At the beginning of this year, countries around the world began to actively buy gold, which, according to many experts, may be a consequence of the aggravation of economic problems in the world. Gold has long been used by countries as a currency. This precious metal is popular due to the fact that it retains its value despite the ups and downs of the economy. However, gold is also widely used in industry.
China has released information about its gold reserves as it tries to reduce the share of its assets in US dollars. Agence France-Presse (AFP).
China's State Administration of Foreign Exchange recently released statistics showing that the country has just made its first gold purchase in three years to replenish its reserves.
According to data released earlier this month, China purchased 1.03 million ounces of gold, equivalent to 32 tons, worth $1.8 billion.
Thus, now the total gold reserves in China are 63.67 million ounces, or almost 112 billion US dollars, compared to 62.64 million ounces before the last operation. Today, China ranks sixth in the world in terms of its gold and foreign exchange reserves, behind the United States, Germany, Italy, France and Russia.
In the third quarter of 2022, from July 1 to September 30, the highest volume of gold purchases of all time was recorded - 399 tons, according to data from the World Gold Council (English World Gold Council). This organization was founded in 1987 by the main gold producers in the world with the aim of stimulating demand for the precious metal. Today, the members of the World Gold Council include organizations that account for about 60 percent of the world's production and production of gold. Due to huge demand, gold prices are currently hovering around $1,775 per ounce.
Gold bars and coins stacked in the vault of the Pro Aurum gold house in Munich, Germany, Aug. 14, 2019. REUTERS/Michael Dalder
Chinese media have said that Beijing has gone through such high purchases in part to reduce the share of assets in US dollars, revolving around it. China sold $113.9 billion worth of US Treasury bills through Q3 2022.
As rumors of a global recession continue to intensify in the coming year, gold purchases are seen as a reflection of the growing volatility of global markets. China also purchased 1,100 metric tons of gold in 2017. This transaction put him on a par with the largest consumers of gold in the world.
This malleable metal has several industrial uses, but over 80% of gold is used in electronics, where it is valued for its electrical conductivity and resistance to oxidation.
China, which accounts for 36% of the annual turnover, ranks first in the world in the production of electrical equipment.
Paramilitary police officers guard a building in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China, 30 September 2022. Reuters/Tingdshu Wang,
Thanks to its key position, China has become the largest buyer of semiconductor chips used in electronics. As a result, semiconductor chips have become a key aspect in the escalation of the conflict between Beijing and Washington.
At the end of last week, the media wrote about the unrest of the United States regarding the increased nuclear potential of the People's Republic of China. The Americans suspect that Beijing is quite capable of overtaking the United States in terms of the number of nuclear warheads on intercontinental ballistic missiles and may have already done so. Representatives of the US Congress on the Republican side said that if China continues to build up nuclear technology at this rate, then by 2035 its arsenal "will increase to about 1,500 warheads."