August data showed that China’s foreign exchange reserve dropped 1.38% from a month earlier to $3.16 trillion, the lowest level since the beginning of the year, according to China’s State Administration of Foreign Exchange ( SAFE).
- At the same time China extended its streak of expanding gold reserves to a 10th consecutive month. The People’s Bank of China bought about 930,000 ounces of gold into its reserves last month. This boosts its holdings to 69.62 million ounces (2,165 tons).
- Since November, China has added a total of 5.95 million ounces to its stockpile.
China has been expanding gold purchases as part of efforts to reduce reliance on the U.S. dollar.