China’s Gold Play: Leveraging US Instability for Renminbi’s Rise

China’s Gold Play: Leveraging US Instability for Renminbi’s Rise

China's central bank, the People's Bank of China (PBOC), is actively pursuing a dual strategy of significantly increasing its gold reserves and promoting the internationalization of its currency, the renminbi. This assertive approach is largely fueled by perceived instabilities in the global financial system, particularly those stemming from the United States' political landscape, including former President Trump's critiques of the Federal Reserve's independence and the broader economic uncertainties created by protectionist trade policies. Leading Chinese economists view these developments as a unique and timely opportunity for Beijing to enhance the renminbi's global standing and safeguard the value of its substantial foreign exchange reserves. The strategy marks a calculated move to diversify away from traditional dollar-denominated assets, which are seen as increasingly vulnerable to political interference and volatile policy shifts in the US. Record Gold Acc…