China accumulates gold at a rapid pace, buys a whopping 50 tonnes in February and 5 tonnes in March; here's why Xi Jinping is stockpiling the precious metal

Amidst the US-China tariffs trade war, Beijing has secured a record gold reserves. This comes as China’s central bank acquired 50 tonnes gold in February, followed by five tonnes in March, as per a report.

Till March, Xi Jinping's China has recorded gold reserves of a staggering 2,292 tonnes which accounts for 6.5 per cent of the country's official reserve assets, as per a report on The Kobeissi Letter.

Goldman Sachs reported that China bought 50 tonnes of Gold in February, much more than Beijing officially reported. According to The Kobeissi Letter, China's gold buying spree has gone in the last three years.


Earlier in April, China's central bank data showed that China's gold reserves stood at 73.7 million fine troy ounces at the end of March, up from 73.61 million ounces at the end of February, as the central bank bought the precious metal for a fifth straight month.

China's gold reserves were valued at $229.6 billion at the end of last month, up from $208.64 billion at the end of February, the People's Bank of China (PBOC) data showed.

China's central bank said on Monday it was encouraging state-owned enterprises to prioritise yuan usage in payment and settlement in their overseas expansion, in what is seen as an official attempt to accelerate yuan internationalisation amid intensifying global trade tensions.

The comments come as U.S. President Donald Trump has launched so-called "reciprocal" tariffs, which have shaken up global trade and roiled financial markets.

Although Trump announced a 90-day pause on planned tariff hikes for most countries, he raised duties on Chinese goods to 145 per cent, prompting Beijing to retaliate with counter-measures.

The People's Bank of China (PBOC) said it encouraged commercial banks in Shanghai to expand cross-border credit expansion to lower companies' yuan financing costs and promote yuan-dominated imports and exports, according to a notice published on its website.

FAQs

Q1. What is central bank of China?
A1. China's central bank is People's Bank of China (PBOC).

Q2. Who is President of USA?
A2. President of USA is Donald Trump.