Russia's key partner rushed to buy gold
Quick Look
The People's Bank of China has been increasing its gold reserves for 23 months in a row as it seeks to reduce dependence on the US dollar and protect assets amid geopolitical tensions and economic instability.
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Why It Matters
China is actively increasing its gold reserves against the backdrop of the freezing of Bank of Russia assets by Western countries.
The People's Bank of China has been buying gold for 23 straight months, importing more of it than ever before. CNBC reported this.
According to him, this policy is dictated by Beijing’s desire to reduce dependence on the dollar, and is also due to the fact that Chinese households do not have reliable alternatives in an unstable economy.
The People's Bank of China increased its purchases by about 23 tons in September, the largest monthly purchase volume in nearly three years and extending its longest buying streak since at least 2015, according to the State Administration of Foreign Exchange.
Chinese households and companies are also turning to gold as a safe haven. In the first eight months of 2026, the country spent a record $158.8 billion, importing more than a thousand tons of gold.
According to Julius Baer Group analyst Carsten Menke, the actions of the People's Bank of China are explained by political reasons. We are talking about Washington using the dollar as a weapon. The channel also recalled that after the freezing of the Bank of Russia's assets by Western governments, China realized how limited foreign reserves are in times of geopolitical tension. Gold in its own vaults remains protected.
Open Questions
- What is the exact amount of China's gold reserves at the moment?
