The Popular Bank of China continues to buy gold and contributes to the price increase of precious metal.
The intensification of purchases of gold by the Popular Bank of China (BPC) He highlighted the Beijing strategy for reduce your dollar dependence American and thus be able to strengthen the position of Yuan as a global alternative.
Since 2023, China acquired more than 290 tons of goldconsolidating as the biggest buyer among the central banks. And so far from 2025, he added additional 21 tons, which raises his official reserves to 2,300 tonsvalued in some U $ 244,000 million.
China continues to buy gold despite the context
The phenomenon occurs parallel to a historical rebound of gold, which reached the U $ S3.608 per Troy ounce this week. The usual thing would be for central banks to stop purchases in a context of high prices, but the growing geopolitical tensions and the fear of sanctions made gold a strategic refuge for several emerging economies.
The precedent of Russia in 2022, when half of its international reserves called in dollars and euros froze, continues to mark the monetary policy of other countries.
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Irene Zaera.
Analysts estimate that Chinese reserves are still far from reflecting their economic weight. Today they are equivalent to just 7% of the total of their international reserves, compared to the world average of 22% and well below the US, which maintains more than 8,100 tons of gold (78% of its reserves).
Gigantic reserves
Various voices from China suggest that An adequate level would be around 5,000 tonswhile others project that, if the nation manages to become the largest global economy, it should exceed 8,000 tons in the coming decades.
The contrast with Poland illustrates the global trend. Warsaw accumulated 287 tons between 2023 and 2025, already reaching its goal that gold represents 20% of its reserves. The impulse was motivated by the proximity of the conflict in Ukraine and the need to shield its financial stability.
Unlike Europe or the USA, China faces an additional challenge: The size of their total reserves, which amount to $ 3.6 billion. Raising the proportion of gold requires massive and sustained purchases. However, its world’s largest producer (8% of the global supply) and unstalled holdings of state entities could accelerate that process.
Source: Ambito
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