China Increases Gold Import Quotas

China has been under strict capital control, including for gold. While China is not opening its capital account and behaving more like it expects another wave of global disinlation is coming, it is making hay while the Sun is shining. In this case, the Sun being USG emissions of Federal Reserve notes flowing straight ointo China's shores.

Reuters: China opens its borders to multi-billion dollar gold imports - sources

The People's Bank of China (PBOC), the nation's central bank, controls how much gold enters China through a system of quotas given to commercial banks. It usually allows enough metal in to satisfy local demand but sometimes restricts the flow.

In recent weeks it has given permission for large amounts of bullion to enter, the sources said.

"We had no quotas for a while. Now we are getting them ... the most since 2019," said a source at one of the banks moving gold into China.

Around 150 tonnes of gold worth $8.5 billion at current prices is likely to be shipped, four sources said. Two of the sources said the bullion would be shipped in April. Two others said it would reach China over April and May.

No quotas for awhile because the Chinese yuan is in such a precarious position that importing gold is a risk. Is this the start of a new era or another temporary respite as seen leading into 2011, 2014, 2018 and 2020?