China has been accumulating gold for15 consecutive months, with reserves hitting a record $369.6 billion. China’s gold accumulation spree complements its de-dollarization agenda. The country is at the forefront of moving away from a US dollar-centric world. China has made substantial inroads in pushing for more yuan use for global trade settlement. Let’s discuss if its sudden increase in gold appetite is a way to move against the dollar.
🚨CHINA’S GOLD RESERVES HIT RECORD $369.6BILLIONChina’s gold holdings climbed to an all-time high of $369.6B in January, marking a 15th straight month of accumulation by the People's Bank of China.pic.twitter.com/8cGpGBzVOb
2025 saw a rapid shift towards commodities such as gold and silver. Investors began pulling back from stocks and cryptocurrencies as macroeconomic factors began to show signs of weakness. Gold and silver have hit multiple all-time highs over the last few months as investors and countries diversify their portfolios and take a more risk-off approach.
While China has made substantial developments to promote the use of the yuan for international trade settlements, replacing the dollar may be quite far-fetched, at least for the foreseeable future. Sanctioned countries have moved to other currencies due to the lack of access to the greenback, but other trade partners will likely not ditch the dollar just yet.
Also Read:China Stops Dumping US Dollar Treasuries, Buys $170 Billion at Pace
The US dollar-based system is a well-oiled machine. No other currency comes close to the dollar in terms of liquidity and stability. The BRICS bloc of nations has also expressed the desire to launch its own currency for mutual trade, but such a move could bring severe consequences. President Trump had said that he would retaliate with heavy tariffs on any country that attempts to ditch the dollar for other currencies.
Source: Watcher Guru
