China Attempting To Become Custodian of Foreign Gold Reserves in Move To Lessen Dependence on Western Financial System: Report

China is reportedly making additional moves into the gold sector.

Bloomberg, citing “people familiar with the matter,” reports that the People’s Bank of China (PBOC) now wants to custody foreign sovereign gold reserves.

In recent months, the Chinese central bank has been encouraging other central banks in friendly countries to buy gold and store it within PRC borders. One Southeast Asian country is reportedly interested, according to Bloomberg’s anonymous sources.

The People’s Bank of China currently owns the fifth-largest stockpile of gold reserves among all central banks, holding 2,298.53 tonnes, according to data from the World Gold Council.

The US is first on the list, with 8,133.46 tonnes of gold in reserve, followed by Germany (3,350.25), Italy (2,451.84) and France (2,437).

Bloomberg also recently reported that China is planning to increase the number of ports that can accept “multi-use permits” to ease the regulatory burden on gold imports and exports.

The PBOC says the move aims to “enhance vitality and respond to external shocks by improving [the] business environment at ports” in the country.

Macro investor Luke Gromen recently said that by rapidly accumulating gold, China was rolling out an “elegant” solution to the yuan’s depreciation while ensuring that many of its citizens do not financially suffer.

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