China sells off US bonds, makes a strong push to accumulate gold and euros

According to data from the U.S. Department of the Treasury, China sold 25.7 billion USD in bonds in July, bringing its total holdings down to 730.7 billion USD – the lowest level since January 2009 and a 45% decrease from the record 1.32 trillion USD in November 2013.

Experts say that Beijing may be diversifying its foreign exchange reserves into European bonds, euros, British pounds, and Swiss francs. At the same time, Bloomberg reveals that the PBOC is easing gold import procedures, extending the validity of licenses to 9 months and removing the limit on the number of uses, in order to boost the flow of precious metals.

Analysts say that China's rapid accumulation of gold is both a way to counter the depreciation of the yuan and to protect the assets of its citizens.