Product

Learn

Company

AKTIO coin

Report: China Suspected of Stockpiling Gold to ‘Cut Greenback Dependence’

Economy MARKET_WATCH

During the first week of November, the World Gold Council’s (WGC) report that covered last quarter’s global gold demand noted that central banks worldwide purchased close to 400 tons of gold in Q3 2022. The study highlighted that it was the “most on record,” and the WGC researchers also spotted a “substantial estimate for unreported buying.” A report published on Nov. 22 now says the mystery gold buyer is likely China, and it further alleged that the country “bought a substantial amount of gold from Russia.”

 

The Third Quarter’s Mystery Gold Buyer Is Likely China, Market Analyst Says

 

According to a report published by Japan’s Nikkei news outlet, China is suspected of stockpiling gold to “cut greenback dependence.” Nikkei’s report follows the recent study published by the World Gold Council (WGC) that shows a large amount of gold purchased by the world’s central banks last quarter.

 

At the time, the WGC report further noted, “unreported buying” and a mystery buyer that acquired substantial amounts of the precious metal. However, the WGC’s quarterly report does not disclose the mystery gold buyer’s identity.

Nikkei’s article suggests the mystery buyer is thought to be China, and the move is meant to cut China’s dependence away from the U.S. dollar. Speaking with Nikkei’s reporter, the precious metals analyst, Koichiro Kamei, told the publication that the magnitude of the mystery buyer’s gold purchases is “unheard of.”

 

The market analyst, Itsuo Toshima, believes the country likely purchased a large sum of gold from the Russian Federation. “China likely bought a substantial amount of gold from Russia,” Toshima told the Nikkei reporter.

It’s not the first time China has been secretive about gold purchases as China has not been actively reporting gold holdings and purchases since 2019. Furthermore, the People’s Bank of China surprised the globe in 2015, as the public found out the central bank was stockpiling tons of gold secretly since 2009.

 

China’s gold stockpiling scheme is one of the many moves that possibly aim to distance the country’s financials from the U.S. dollar. At the end of October, economists discussed how Russia and China could potentially develop a gold-backed currency that could undermine the greenback.

Furthermore, Russia and members of the BRICS countries revealed plans in June to create a new international reserve currency. Saudi Arabia requested to join the BRICS nations at that time as well.

At the end of October, Rich Dad Poor Dad author, Robert Kiyosaki, cited Saudi Arabia’s request to join BRICS as one reason why he believes the U.S. dollar is toast. Nikkei’s article also notes that the Chinese government has been “unloading U.S. bonds” and in recent times China has been getting rid of billions in U.S. debt.

 

The market analyst Toshima told the Nikkei staff writer, Munemasa Horio, that the “People’s Bank of China likely bought a portion of the Central Bank of the Russian Federation’s gold holdings of over 2,000 tonnes.”

WGC statistics say the Russian Federation held around 2,298.5 metric tons of gold as of January 2022. While China is thought to be the sixth largest nation for the amount of gold it has on reserve, Russia is ostensibly the fourth-largest nation in Europe in terms of gold reserves.

What do you think about the report that says China is stockpiling gold to cut dependency from the U.S. dollar? Let us know what you think about this subject in the comments section below.

 

Source : news.bitcoin.com/report-china-suspected-of-stockpiling-gold-to-cut-greenback-dependence/ by Jamie Redman - November 22, 2022

Join our 60k+
tribe of Akters

Have any questions?

Check our Q&A

About the AKTIO coin

Benefit fully from our ecosystem

What’s new in the App?

We’re adding new features

Customer support

support@akt.io

+353 1 574 7382

Opening hours:

Monday to Friday: 9am - 5pm CET

Company

About

AKTIO coin

Careers

Learn

News

Glossary

AKT Academy

Help

FAQ

Sitemap

System Status

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata ICO Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Ltd, Reg number 12208424 and incorporated in the United Kingdom is the registered agent of Modulr FS Limited, a company registered in England with company number 09897919, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata Pay Europe Limited, Reg number 69028 and incorporated in Ireland is the registered agent of Modulr FS Europe Limited, a company registered in Ireland with company number 638002, authorised and regulated by the Central Bank of Ireland as an Electronic Money Institution (Institution Code C191242). Traditional currency is safeguarded as e-money in accordance with our regulatory obligations. Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata ICO Limited, Reg number 690280 and incorporated in Ireland has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS. It is important to note that a registration as a VASP is a registration for Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) purposes only. While Automata ICO Limited does have certain financial crime control obligations under this registration, cryptoasset services remain largely unregulated. The Financial Ombudsman Service or the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Automata ICO Limited.