Gold accumulation in China is a warning sign for the dollar – Asia Times

TOKYO – One of the worst-kept secrets in global central banks is the extent to which Chinese officials are exchanging dollars for gold.

Governor Yi Gang’s team at the People’s Bank of China is not admitting it. The PBOC must not, however, given the clear political trajectory Chinese leader Xi Jinping has pursued in recent years: the internationalization of the yuan as the dollar’s main rival.

Xi’s stance hasn’t changed all that much as other governments are realizing that confidence in the global reserve currency is dwindling and that an alternative to the dollar is badly needed.

Leave a Reply

%d bloggers like this: