The People’s Bank of China added nearly 20 tonnes of gold to its reserves in July, bringing the total to approximately 2,366 tonnes, marking the 21st consecutive month of purchases. Beijing is developing an international network of safes for gold storage and physical delivery, with a first offshore site in Hong Kong and planned expansion to Singapore, Kuala Lumpur, Dubai, Riyadh, and Moscow. This strategy aims to strengthen the yuan’s international role by making it convertible to gold, making the Chinese currency more attractive to trading partners. In 2025, China also reclassified gold as a « strategic ore, » a status designed to benefit domestic mining groups. Analysts note, however, that the PBoC’s gold reserves represent less than 1% of China’s M2 money supply, approximately $300 billion against $49 trillion in M2, limiting any near-term prospect of a partial gold standard.
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