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China Swaps Dollars For Gold: Buying Spree Continues For 23 Months
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News18•07-10-2026, 17:02
China Swaps Dollars For Gold: Buying Spree Continues For 23 Months
- •China purchased approximately 23 tons of gold worth about Rs 29,418 crore in September.
- •This marks the 23rd consecutive month that China has increased its gold reserves.
- •China holds around 2,409.59 tons of gold, valued at approximately Rs 30.80 lakh crore.
- •While foreign exchange reserves dropped, experts note that gold purchases do not account for the entire decline.
- •Key reasons for China's gold accumulation include reducing dollar dependence, managing geopolitical tensions, and diversifying risk.
Key Questions Answered
China is gradually increasing its gold reserves and offloading dollars to diversify its foreign exchange reserves, reduce over-reliance on the US dollar, and mitigate risks arising from trade and geopolitical tensions with the United States.
By the end of September, China increased its gold reserves for the 23rd consecutive month, adding about 23 tons of gold worth roughly Rs 29,418 crore during that month alone.
Because India is one of the world's major gold markets where the yellow metal is vital for jewelry, savings, and weddings, continuous central bank purchases by a major country like China support global demand and can put upward pressure on international prices.
