China drifts to gold, decreasing its share of dollar in reserves

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New figures from the Chinese government show that the Central bank of China increased its gold reserves in November for the first time in more than three years. Possibly this is a sign that Beijing is trying to spread its foreign reserves and wants to be less dependent on the US dollar.

China increased its gold reserves in November by 32 tons compared to the previous month. In total, China’s central bank now holds about 1,980 tons of gold, of which China’s gold reserves are the fifth largest in the world, according to Bloomberg News Agency.

In the third quarter of this year, huge amounts of gold were collected on the international market by unknown buyers. Observers speculated that China or Russia wanted to replenish their gold reserves. It remains now that China has been a major buyer.

Meanwhile, China’s international currency reserves rose by $ 65 million to $ 3,100 million last month.

China is trying to distance itself from the US-dominated financial system. Geopolitical tensions between the two world powers remain high, and Washington’s economic sanctions against Russia seem to further isolate policymakers in Beijing from the West.

The price of gold climbed 0.3 percent on Wednesday to $ 1,782 per troy ounce (about 31.1 grams) and has risen more than 5 percent over the past month.

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