Opinion: China is about to come clean about how much gold it really owns

 

To join elite currency club, Beijing may agree to more transparency of its holdings

China may be ready to tone down its secrecy over state gold holdings — thanks to complicated maneuvering on the renminbi potentially joining the International Monetary Fund’s monetary reserve denominator, the special drawing right, later this year.

As part of diversification of reserve holdings, over the past five years China is widely believed to have amassed official gold reserves well above its officially reported total of 1,054 tons, a figure that Beijing has maintained unchanged since 2009 in data reported to the IMF. Gold mines in China — the world’s biggest bullion producer for the past eight years, with 2014 output of 452 tons — have been quietly selling some of their output to the state, possibly several hundred tons in some recent years.

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