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Gold August 23, 2019 11:30:25 AM

China Declares Partial Lifting of Restrictions on Gold Import

Paul Ploumis
ScrapMonster Author
The country had imported around 1,500 tonnes of gold in 2018, accounting for approximately one-third of the world’s total supply.

China Declares Partial Lifting of Restrictions on Gold Import

SEATTLE (Scrap Monster): The Chinese administration has partially lifted restrictions on gold imports into the country, as reported by Reuters.

According to sources, Chinese central bank had not granted import quotas to commercial banks responsible for gold imports into the country. The move was intended to protect capital outflows from the country, as part of efforts to boost the domestic currency, which had slumped to multi-year lows against the dollar, following the trade spat with the United States.

China’s central bank is believed to have started issuing quotas for gold import effective last week. However, the quotas were issued for lower amounts of gold. This suggests that the government has yielded to industry pleas to lift sanctions on gold imports, though it could be considered as a partial lifting of the restrictions. Meantime, the Chinese central bank has declined to comment on the policy change.

ALSO READ: India Gold Demand to Fall 2.4% Due to Hike in Import Duty

As per latest available customs statistics, the combined gold imports during the months of May and June this year has dropped significantly by 228 tonnes, as compared with the imports during the corresponding two months in 2018. The imports in May ’19 alone had more than halved to 71 mt from 157 mt in May last year. Estimates indicate that at least 500 tonnes of less gold was imported into the country during the period since May until mid-August this year, in comparison with the same period a year before.

The country had imported around 1,500 tonnes of gold in 2018, accounting for approximately one-third of the world’s total supply.

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