China lessened its import of gold, suspected to ease dollar surge and beef up yuan’s rise in the middle of slow economic growth brought by the recent trade conflict with the USA.
Known as the biggest gold importer, China accounted for one-third of the world’s total supply of gold in 2018, amounting to $60 billion worth of gold.
This year, however, China has reduced its import of gold by 300-500 tonnes, equivalent to $15-25 billion.
According to the data provided by Chinese customs, last year’s gold import for the first half of the year was 883 tonnes. This year’s gold import for the same time period was down to 575 tonnes of gold.
Moreover, the data also revealed that China’s gold reserves rose five times to almost 2,000 tonnes.
Analysts said in retrospect that China’s move to limit gold import this year was to control the cash amount for going out of the country as the value of yuan depreciates.
It is not the first time, however, that China has limited its gold import as it had done the same back in 2016 when the value of yuan was low.