China’s gold supply is a warning sign for the dollar – Asia Times

TOKYO – One of the worst-kept secrets in global central banking is the extent to which Chinese officials exchange dollars for gold.

Governor Yi Gang’s team at the People’s Bank of China doesn’t admit much. The PBOC need not do that, however, given the clear policy trajectory Chinese leader Xi Jinping has followed in recent years: internationalization of the yuan as the dollar’s main rival.

Xi’s stance has not changed so much, other governments are noticing that confidence in the global reserve currency is waning and that an alternative to the dollar is desperately needed.

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