How has China's gold reserve increased over the years
Introduction
China’s gold reserves have seen significant growth over the years, reflecting the country’s strategic efforts to diversify its foreign exchange holdings and reduce dependence on the US dollar. China’s Zijin acquires $1bn Ghana goldfield.
Here’s an overview of China’s gold reserve increases
Historical Growth
In 2000, China’s gold reserves stood at a modest 395.01 tonnes.
By 2010, China had become the world’s second-largest economy and began increasing its gold holdings while reducing foreign exchange reserves.
Recent Acceleration
From 2013 to 2023, China’s gold reserves grew from around 33.89 million ounces to almost 72 million ounces.
In November 2022, China resumed reporting gold purchases after a three-year silence.
Current Status
As of January 31, 2025, China’s official gold holdings stand at 2,280 tonnes, accounting for 5.5% of total foreign reserves, a record high.
This represents an increase of 44 tonnes from the end of 2023.
Notable Periods of Accumulation
Between November 2022 and April 2024, China added 316 tonnes to its gold reserves, a 16% increase over 18 months.
In 2024 alone, China accumulated 29 tonnes of gold in the first four months.
The People’s Bank of China (PBoC) reported 18 consecutive months of gold purchases up to April 2024.
Strategic Implications
China’s gold-buying strategy aims to reduce its dependency on the US dollar, aligning with other BRICS nations.
The increase in gold reserves has boosted gold’s share in China’s total foreign exchange reserves from 2.9% in 2019 to 4.3% as of February 2024.
Conclusion
China’s consistent gold accumulation reflects its long-term strategy to strengthen its financial position and increase its influence in the global monetary system.
The country’s central bank continues to view gold as a strategic asset, and this trend of increasing reserves is likely to persist in the coming years
No doubt discovery of new Gold reserves adds more economic luck to China.
