CHINA wants to LORD over GOLD and FOREX markets

Gold is making news in China these days. China’s aggressive attempt to build up gold reserves has been the talk of the bullion world in the last few months. Especially, ever since India bought 200 tonnes of gold from the International Monetary Fund (IMF) last year, there has been speculation that the Chinese central bank would be the next to purchase the remaining IMF gold.

Now that the IMF has announced the sale of 191 tonnes of gold, there has been lots of rumours and speculation running thick around the world that China is all set to buy gold from IMF. China, in fact, is moving very cleverly. The country’s strategy is not just in buying more gold and mopping up the yellow metal reserves. China also wants to ensure that the country defeats the US dollar dominance and the Chinese currency—Yuan—emerges as the next reserve currency of the world.

In order to rule the world in gold and currency markets, China is planning to allow private enterprises to buy gold from the international market. If such an approval comes from the Chinese government, China is going to play the most pivotal role in the global gold and bullion market.

Now, the question every economist is asking is whether China would beat the US in lording over gold reserves and the currency reserves of the world. May be, it is a possibility, if the current Chinese moves are any indication.