(Kitco News) – China’s central bank added to its gold reserves once again in July, but its overall foreign exchange holdings fell as the USD strengthened, according to official data released on Wednesday.
“Data reported by the People's Bank of China shows its #gold reserves rose by 2 tonnes in July - the ninth consecutive month of increases,” wrote Krishan Gopaul, Senior Analyst, EMEA, at the World Gold Council. “This lifts YTD net purchases to 21 tonnes, with total gold holdings now hitting the 2,300 tonne mark.”
By value, China’s gold reserves rose by about $1 billion in July to total $244 billion. China's central bank has bought 1.16 million ounces of gold since it resumed purchases last November. Gold accounts for approximately 7% of China's official reserve assets, which is only half of the global average of 15%.
Meanwhile, the country's foreign exchange reserves fell during the month due to the appreciation of the U.S. dollar.
China's foreign exchange reserves totaled $3.3 trillion at the end of July, down about $25.2 billion from June, due mainly to changes in exchange rates and asset prices, the data showed.
