China relaxed restrictions on gold imports, with the central bank now issuing lower quotas for the precious metal after not granting them for several months, Reuters reported Aug. 22, citing bullion industry sources.
The sources cited in the newswire's report, however, did not specify the exact amount of gold allowed for import by the central bank.
The country's customs data showed that gold imports in 2018 totaled around 1,500 tonnes worth US$60 billion, equivalent to one-third of the world's total supply. China's gold reserves, meanwhile, grew to nearly 2,000 tonnes.
However, gold imports in May and June this year were lower by 228 tonnes compared to the same year-ago period, customs figures showed. Industry sources told Reuters that by mid-August, up to 500 tonnes less gold reached China since May against the comparable period in the prior year.
The restrictions, which had been in place since May, were seen as a measure to curb outflow of U.S. dollars — which is used to purchase the bullion from the likes of Switzerland, Australia and South Africa — and strengthen its yuan currency amid a slow economic growth.
The Asian powerhouse is in the midst of a deepening trade war with the U.S., resulting in the slowest economic growth pace in nearly 30 years and pushing the yuan down more than 10% against the U.S. dollar since early 2018.
