• Tweeter

  • republish

A painting shows gold prices in a jewelry store in Beijing, August 6, 2019. REUTERS / Jason Lee

The second largest buyer of gold, China has significantly reduced the pace of its imports since May. This is an information from Reuters. A measure that aims to support its currency, the yuan, against the dollar.

These restrictions are a response to escalating trade tensions with the United States, which has pushed the yuan to its lowest level since the 2008 crisis.

This is not the first time that the Chinese Central Bank has taken such a step to support the yuan whose value has depreciated sharply against the dollar.

Already in 2016, the Chinese central bank had reduced gold imports to control capital outflows.

► See also: China: the devaluation of the yuan, a double-edged sword

China is today the world's second largest importer of gold. Imports from Australia, South Africa and Switzerland, usually paid in dollars. That's a third of global demand.

Over the last 20 years, the country has grown and its demand for gold also. According to official figures, Beijing today has a reserve of two thousand tons of gold. It is also the world's largest consumer of gold in India.

► See also: Chinese foreign trade at half mast