China has continued to build up its gold reserves for a seventh consecutive month in an attempt to reduce its reliance on the US dollar, according to the People’s Bank of China. As of May 2023, China has considerably raised its gold holdings as part of a plan to diversify its reserves away from the American currency. In May, China bought roughly 16 tonnes of gold, adding to 144 tonnes purchased since December last year. These measures are aimed at reducing the share of the US dollar in China’s foreign exchange reserves which slipped to $3.18 trillion in the previous month. In the first quarter of the year, only Singapore outpaced China in terms of gold purchases. According to the State Administration of Foreign Exchange (SAFE) data, China’s foreign exchange reserves increased by $21 billion in April to reach $3.205 trillion. At the same time, China held 66.76 million troy ounces of gold at the end of April, bringing it up from 66.50 million ounces in late March.
