Nikkei Asian Review/Yusho Cho/6-19-2019
“Rather than dumping Treasurys as a way to gain leverage in trade negotiations, Beijing seems to be taking a subtler approach through trimming its holdings by $20 billion or less per month. Some of this capital is going into gold. China’s gold reserves have grown for six straight months since December, the first time the country increased its holdings of the precious metal in more than two years.”
USAGOLD note: China is diversifying now and has been diversifying for a number of years and gold has been among the primary beneficiaries of the policy. This article mentions a part of the equation often ignored in the media renditions of Chinese foreign exchange policy, i.e., its desire to hold capital flight to a minimum.
