The country is said to be partially lifting import restrictions on gold, reversing measures put in place since May.
The People's Bank of China (PBOC) resumed issuing import quotas for gold to commercial banks last week, though at lower levels than usual, «Reuters» reported, citing several people with knowledge of the matter.
China stopped issuing import quotas for gold in May, a measure said to be taken to reduce capital outflows and bolster the yuan, as purchases tend to be made in dollars. The curbs translated to a fall in gold imports of 300 to 500 tonnes – worth $15 billion to $25 billion at current prices – compared to the same period year before, «Reuters» said.
According to Chinese customs data, the country imported 71 tonnes of gold in May 2019 compared to 157 tonnes in May 2018, and 57 tonnes in June 2019 compared to 199 tonnes in June 2018, «Reuters» reported. Total purchases for the first half of 2019 reached 573 tonnes compared to 883 tonnes for the same period the year before.
World's Largest Buyer
China is the world's largest purchaser of gold, bringing in 1,500 tonnes of the precious metal in 2018, equivalent to one-third of global supply.
The country has been steadily increasing its holdings of gold as it attempts to de-dollarize and reduce its dependency on the U.S. «China Daily» reported, citing PBOC data, that China's gold reserves climbed for the seventh consecutive month in June, with reserves reaching 1,926.55 tonnes.
