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China Gold Strategy: China rapidly bought record Rs 15 lakh crore gold to reduce US dollar dependence.
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CNBC Awaaz•12-10-2026, 11:14
China Gold Strategy: China rapidly bought record Rs 15 lakh crore gold to reduce US dollar dependence.
- •China imported over 1,000 tonnes of gold in the first eight months of 2026, spending a record $158.8 billion.
- •The Chinese central bank has been increasing its gold reserves for 23 consecutive months to reduce reliance on the US dollar.
- •Geopolitical tensions and the freezing of Russian assets by Western countries have driven China to secure its reserves in domestic gold.
- •Weak domestic economic conditions, declining real estate, and low stock market returns are pushing ordinary citizens in China to buy gold.
- •Strong and continuous buying by the world's major economies continues to provide vital long-term support to global gold prices.
Key Questions Answered
China is buying gold rapidly to reduce its reliance on the US dollar and US government bonds. This strategic shift helps safeguard its foreign exchange reserves against potential Western geopolitical sanctions, similar to those imposed on Russia.
In the first eight months of 2026, China imported over 1,000 tonnes of gold costing a record $158.8 billion. Additionally, its central bank has continuously increased its gold reserves for 23 consecutive months, including purchasing about 23 tonnes in September 2026.
Ordinary people in China are buying gold due to a weak domestic economy, long-standing declines in real estate, pressure on the stock market, and low returns from alternative options like bank deposits and government bonds.
