China limits imports of gold to strengthen the yuan

BEIJING (Reuters) – China has severely curtailed gold imports since May, in an effort to cut the inflow of dollars and boost the Chinese currency because of slower economic growth, informed sources said. Reuters.

Sources, expressing anonymity because they are not allowed to speak to the media, said the world's second-largest economy had reduced its imports by about 300- 500 tons compared to last year, or between 15 and 25 billion dollars at current prices.

These restrictions come as the intensification of the trade war with the United States has slowed Chinese growth at its slowest pace for nearly three decades and put pressure on the yuan, bringing it down to its lowest level. since 2008.

China is the largest importer of gold in the world. According to Chinese customs data, the country imported 1,500 tons of precious metals valued at about $ 60 billion last year, a third of the world total.

According to official data, China's demand for gold jewelery, investment in bullion and yellow metal coins has tripled in the last two decades as the country has been growing rapidly.

At the same time, China's official gold reserves quadrupled to about 2,000 tons, according to official data.