People’s Bank of China Extends Gold Accumulation to 17th Month to Hedge Against US Debt Risks

The People’s Bank of China increased its gold holdings to 74.38 million ounces in March, a strategic move to hedge against US debt and support the RMB.

By: AXL Media

Published: Apr 9, 2026, 6:56 AM EDT

Source: Information for this report was sourced from China Daily

Strategic Expansion of National Gold Holdings

The People’s Bank of China (PBOC) has maintained its consistent trajectory of precious metal accumulation, marking its 17th straight month of growth in March. Official data released Tuesday shows that national gold reserves rose to 74.38 million ounces, up from 74.22 million ounces in February. According to analysts from Orient Golden Credit Rating International, the March increment of 160,000 ounces represents the largest single month addition in over a year, signaling a commitment to diversifying foreign exchange reserves despite significant price fluctuations in the global market.

Risk Management Amid Global Debt Concerns

The continued buildup of physical gold is seen by economists as a defensive maneuver against systemic risks in the international financial order. According to Shao Yu, chief economist at Fudan University, China is acting as a long term allocator rather than a short term trader. This strategy is primarily designed to mitigate the potential impact of mounting US debt and the volatility of dollar denominated assets. By shifting a portion of its reserves into non freezable physical assets, China is seeking to increase institutional certainty in an era of heightened geopolitical and economic unpredictability.

Underpinning the Internationalization of the Renminbi

Beyond risk mitigation, the expansion of gold reserves plays a mechanical role in the global standing of the Chinese currency. Market analysts suggest that a robust gold backing reinforces the credibility and stability of the renminbi (RMB) as it seeks a larger share of international trade and central bank holdings. According to Morton Lo of FXTM, gold has transitioned from a traditional safe haven into a foundational asset tied to the security of foreign exchange reserves. This strategic positioning provides the necessary "hard asset" credibility to support the RMB's broader global adoption.