BEIJING (Scrap Monster): As china surges to pile up more gold, Chinese Yuan has dropped 3% this year. It is said that china’s economy has been going through a slow-down.
According to experts, the current economy of china tends to welcome inflation as the gold prices have declined in this year. After all, China has scored a big credit in global market. The domestic investors of China have been much worried over the declining Yuan value. The Chinese Yuan plays a complete role in trade as US dollar crediting has been used for financial backup of yuan investments.
As per the report, China’s gold demand spiked 1,000 tonnes, reaching 1,176 tonnes after a 41% year-on-year gain. Last year, the people had swarmed over to accumulate more gold as its prices declined by 28%. Though China has not released official report of its gold purchases, it is believed that the country imported nearly $70 billion worth gold in 2013. Last year, China imported 1,160 tonnes of gold from Hong Kong apart from the domestic production, 428 tonnes.
While gold had declined 28 percent in 2013, China marked a record gold consumption and its banks expanded their gold reserves. Meanwhile, China has already permitted 12 banks to import gold- Industrial and Commercial Bank of China Ltd , Agricultural Bank of China Ltd , ANZ and HSBC are among them. The central bank revealed its gold reserves had spiked to 1,054 tonnes from 600 tonnes in 2003.