China to Increase Gold Reserves
China is planning to increase its gold reserves up to 53.93 million troy ounces from 53.32 million ounces in July. According to central bank the world’s biggest bullion consumer ended six years of mystery on how much gold its storing, thus revealing a 57 percent increase in holdings since 2009 and overtaking Russia in becoming the country to have the fifth largest stash of the precious metal.
Gold bullion still remains the large part of most central bank reserves, years after they stopped using gold to back up paper money. Stockpiles of gold helped China to diversify their foreign exchange holdings and turned the country into the second largest economy in the world seeking to raise its international profile using its own currency. The central bank is diversifying its reserves and bargain hunting I already taking place and the People’s Bank of China is trying to make the renminbi an international currency.
The central bank boosted its bullion assets to 53.32 million ounces or up 1.054 tons when it last upgraded their figures. The US has the biggest reserves which stands at 8,133.5 tons, while other nations expanded their holdings in the past years and is looking at gold as a hedge against volatile currency movements.