Allegedly, conditions imposed by the domestic central bank prevented that since May additionally up to 500 tons of gold came to China.
Choked gold imports
China relaxes the pads for gold imports. According to a Reuters report, quota regulations by the central bank prevented legitimate commercial banks from getting gold in the range of 300 to 500 tons since May. The People’s Bank of China wanted to prevent capital outflows and a weakening of the yuan. Recently, however, the central bank of China devalued its currency several times against the US dollar. This is seen by market observers as a countermeasure to the Chinese customs punitive tariffs that have been repeatedly imposed by the United States.
More gold desired
Now they have loosened the quotation for gold last week. According to Reuters and the opinion of informed circles to a level that was lower than previously usual. The restrictions were partially lifted. Switzerland’s foreign trade data, which documented exports of around 400 tonnes to China alone last year, recently showed significantly lower volumes delivered to the country. From January to July, China officially imported 94 tonnes from Switzerland. In May, June and July there were a total of only 23 tons.