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Does the PBoC Store Gold at the Fed In New York?

By:Jan Nieuwenhuijs

Published: Jun 9, 2020, 22:15 GMT+8•8min read

Rumors are making rounds the Chinese central bank stores gold at the Federal Reserve Bank of New York. If true, this would be crucial in the trade war between the U.S. and China. However, according to my research it’s false.

An old rumor resurfaced in May, 2020, on news outlet the Global Times, which states the Chinese central bank has gold stored at Federal Reserve Bank of New York (FRBNY). From the Global Times:

an analyst [Dong] said there is a risk that the US may freeze China’s assets, including gold reserves.

Dong suggested the regulators lower the portion of US Treasuries in China’s forex reserve basket and transport gold stored in the US back to China as soon as possible.‍

The first time I came across this rumor was in 2013, on the website of one of the largest Chinese lenders, Agriculture Bank of China (ABC). Liu Zhongbo from ABC stated:

Statistics show that China has at least 600 tons of gold deposited with the US Federal Reserve…

There are also other websites and blogs that mention the 600 tonnes figure.

Unfortunately, I haven’t been able to contact the analyst quoted in the Global Times (Dong Dengxin), nor ABC’s analyst Liu Zhongbo. Neither did I find any official “statistics” that proof gold owned by the PBoC is in New York.

Though, I did collect valuable intelligence from my contacts in China mainland. Added with data from China’s State Administration of Foreign Exchange (SAFE), my analysis is that the PBoC does not store gold in at the FRBNY.

Written by Jan Nieuwenhuijs for Voima Insight.

The views expressed on Voima Insight are those of the author(s) and do not necessarily reflect the official views or position ofVoima Gold.

https://www.fxempire.com/forecasts/article/does-the-pboc-store-gold-at-the-fed-in-new-york-654322#:~:text=In%20the%20early%202000s%2C%20China’s,store%20gold%20in%20New%20York.

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