Bloomberg: China Boosts Gold Reserves 1% in August, Diversifying Assets
China boosted central bank gold holdings 1 percent as the country that rivals India as the world’s largest bullion consumer seeks to diversify its foreign exchange reserves.Economics aside, gold has no political strings attached. A no brainer for any nation concerned about its sovereignty. Dumping dollars for gold is yuan bearish in the short-term because they are unlikely to sell gold to defend the yuan, but long-term it is bullish for the yuan.
The hoard rose to 54.45 million troy ounces in August from 53.93 million ounces a month earlier, according to data released by the central bank on Wednesday. China ended six years of mystery surrounding the holdings in July, revealing a 57 percent jump since 2009 and overtaking Russia to become the country with the fifth-largest stash.
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