China Increases Gold - Foreign Exchange At 10-Year High
China is once again increasing its gold reserves - and at 3.05 trillion euros, its foreign exchange reserves have reached their highest level in ten years. A clear signal to the world markets.
China's central bank, the People's Bank of China (PBoC), increased its gold reserves again in June 2025. For the eighth month in a row, holdings grew by 70,000 troy ounces to 73.90 million troy ounces, or around 2,298 tons. The value of the gold reserves is 223.50 billion euros, an increase of just under 0.92 billion compared to May. At the same time, foreign exchange reserves rose by 29.62 billion to 3.052 trillion euros, the highest level for almost ten years. These official figures, reported by the State Administration of Foreign Exchange (SAFE), do not reflect all foreign exchange holdings. A significant portion, held by state-owned banks or funds, remains hidden outside the PBoC and SAFE balance sheets.
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Central bank continues to stock up on gold
Since 2015, the share of gold in total reserves has increased from 1.0% to 6.8%. In the same period, the share of US government bonds fell from 32% to 22%. China's gold share of 6.8% is well below average. Countries such as the USA (74%), Germany (69%), France (66%) and Italy (66%) have a higher share. Even emerging countries such as India (8.7%) or Russia (26%) are higher than China in some cases. Nevertheless, China's 3.052 trillion euros in foreign exchange reserves are the largest in the world, which is why even a low proportion of gold (2,298 tons) is enormous in absolute terms.
Foreign exchange reserves reach ten-year high
Foreign exchange reserves have been growing for six months. Rising exports and a strong trade balance are driving the figures upwards. In June, they exceeded analysts' expectations, who had forecast only a slight increase. At the same time, China is promoting the purchase of gold. In March 2025, the China Banking and Insurance Regulatory Commission obliged insurance companies to invest at least one percent of their assets in physical gold. This corresponds to over 4.14 trillion yuan. This step shows Beijing's focus on diversification.
The global economy is characterized by uncertainty. Trade disputes with the US and the fragile role of the US dollar as the reserve currency are forcing China to hedge. Gold remains a stable store of value, regardless of political decisions. The yuan is under pressure from Western sanctions and fluctuating commodity prices. China is pursuing a clear strategy of buying more gold and reducing its dependence on the dollar.
High gold prices, driven by global demand, are shaping the market. China's purchases are having a noticeable impact on price trends. The central bank is acting cautiously but consistently.
Other countries are watching China's actions closely. Gold is gaining geopolitical significance. It secures economic sovereignty for China. Less dependence on Western currencies and more independence through gold determine the course.