China has quietly ramped up gold imports by authorizing major banks to use foreign exchange reserves—specifically US dollars—to fund bullion purchases.
Two sources familiar with the matter confirmed the People’s Bank of China both expanded gold import quotas in April and greenlit forex transactions to support those purchases. While the central bank declined to comment, the coordinated measures are viewed by analysts as an effort to ease the yuan’s rally and shield exporters straining under ongoing US tariffs.
“This could help lenders meet significantly increased appetite for gold while slowing the pace of yuan appreciation,” said one source, adding that the policy shift serves multiple macroeconomic objectives: weakening the yuan, reducing dollar exposure, and reinforcing investor confidence with real asset backing.
Gold, which surged to an all-time high of $3,500 per ounce last month, has drawn renewed interest amid volatility triggered by the US–China trade war and a wave of stimulus measures from Beijing.
Despite record-high prices, China’s central bank increased its gold reserves for the sixth consecutive month in April. The timing is telling: new export orders from China plummeted in April, with the yuan’s strength compounding the blow to manufacturers already hit by tariffs.
Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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