China Grabs More Gold for Reserves

The video discusses China's gradual increase in gold reserves, adding 94 tons since December, as a strategy to diversify its foreign exchange (FX) reserves away from the US dollar. This accumulation coincides with gold prices reaching $1500 per ounce, the highest since 2013. China's FX reserves slightly decreased from $3.12 trillion in June to $3.1 trillion in July, with no significant market intervention observed. Economists suggest that these reserves could be used to stabilize the yuan if necessary, although current capital flows remain balanced.

What is the main reason for China's increase in gold reserves?

• To stabilize the stock market

• To support the local jewelry industry

• To diversify away from the US dollar

• To increase exports

What significant milestone did gold prices reach recently?

• $1200 per ounce

• $1600 per ounce

• $1300 per ounce

• $1500 per ounce

How did China's FX reserves change from June to July?

• They increased significantly

• They remained the same

• They decreased slightly

• They decreased significantly

What is the current status of China's intervention in the currency markets?

• There has been no intervention

• There has been significant intervention

• There seems to be no significant intervention

• There has been a decrease in intervention

Why is it important to monitor China's FX reserves?

• To support the local economy

• To increase foreign investments

• To manage the depreciation of the yuan

• To ensure the stability of the stock market