China Plans Gold Import Export Rule Changes Amid Dollar Diversification

China is planning to ease regulations on gold imports and exports as part of its ongoing efforts to diversify reserves away from the US dollar. The People’s Bank of China (PBOC) proposes expanding the issuance of "multi-use permits," which allow faster approval, by increasing the number of ports authorized to accept them, extending permit validity to nine months, and removing limits on usage frequency. This move builds on a 2016 initiative aimed at streamlining cross-border gold trade to reduce paperwork and accelerate imports, with the goal of enhancing operational resilience and improving the business environment at ports. The PBOC has been steadily increasing its gold reserves, continuing a buying streak for ten consecutive months, while domestic demand for gold bars and coins remains strong. Gold prices have surged nearly 40% this year, driven by central bank purchases, geopolitical tensions, and expectations of US interest rate cuts. The PBOC is seeking public feedback on the proposal until mid-October before finalizing implementation details, although the central bank retains control over import volumes.