Look who’s trading US Dollars for gold.
BBC: China has reported that it has been secretly increasing its gold reserves.
It was able to keep it secret by buying domestically produced metal, almost doubling the amount of gold it holds to more than 1,000 tons.
China has the biggest foreign exchange reserves in the world, totalling almost $2,000bn (£1.373bn).
Of course, this will excite the gold bugs, and feed the storyline of China de-Dollarizing their holdings. Though they continue to fund our crazy government spending, it’s true that they’ve made a number of moves away from just holding dollars. In addition to gold, they’ve been buying copper like crazy, trading dollars for Russian oil and engaging in currency swaps with countries like Argentina, so they can trade without settling in dollars.
No, but really, they’ll never stop funding us, right?
Business Insider Emails & Alerts
Site highlights each day to your inbox.