China Shocker Being Hidden From The Public Out Of Fear It Will Create Worldwide Panic Buying In Gold

須留意的是: 一帶一路、黃金和人民幣 !

kingworldnews.com

As we come to the end of the second week of trading in May, a China shocker is being hidden from the public out of fear it will create worldwide panic buying in gold.

Today King World News received an email question regarding the article below about China.  The email question ultimately has to do with China’s massive gold reserves, the People’s Bank Of China (PBOC), the Silk Road and more…

First here is the email from a KWN reader:

Just ran across this article in link and an a bit confused. Thought you could enlighten me as you understand all of this stuff so quickly. With RMB denominated loans being created in AIIB then swapped by PBOC with local currencies of countries along the Silk Road involved in projects, it seems on surface that RMB would be weak with excess RMB in PBOC. However with Chinese oil futures contract priced in RMB thereby simultaneously paying for its oil and other resources in RMB that would strengthen RMB and gold as the RMB can be converted into gold at SGEI.

Question – I can’t see how OBOR works without China coming clean with its true gold reserves?

Here is the article the KWN reader reader referenced:

ThiBelt and Road projects are encouraged to use local currencies in investment and finance to cut problems associated with exchange rate fluctuations, said Yi Gang, deputy governor of the People’s Bank of China (PBOC).

By using local currencies, countries along the routes can tap into domestic savings and ensure financial stability, he told People’s Daily in an interview on Thursday.

China aims to provide a platform for financial connectivity where participants can share profits and risks, Yi said.

“Although infrastructural projects along the routes tend to have a longer investment horizon, most are commercially profitable. The financial institutions operate under market rules,” the deputy governor was quoted as saying.

Yi echoed remarks made by central bank governor Zhou Xiaochuan last week in promoting usage of local currencies.

Such suggestion comes as nations along the Belt and Road are closer knitted than ever through financial cooperation. According to data by the PBOC, nine Chinese banks have set up subsidiaries in 25 countries along the routes, while 54 commercial banks from 20 countries have established theirs in China by the end of last year.

China has signed currency swap agreements with 21 countries along the Belt and Road, six of which have RQFII (RMB Qualified Foreign Institutional Investors) quota.

Direct currency trade and settlement can lower exchange rate risk and make investments more convenient, Yi said. “Financial cooperation will enable China and countries along the routes to open and integrate further in a broader scope.”

China’s Hidden Secret: Fear Of Worldwide Panic Buying In Gold
 
Stephen Leeb addressed this question directly.  Here is Leeb’s response:
 

The gentleman makes a good point. Please thank him for referring the piece. I suspect China will come clean on their gold reserves but that is likely a last step. I view the recent announcement on oil futures as a necessary next step to a gold-centered monetary system. Coming clean will likely come after all the rules are in place for fear of creating worldwide panic buying in gold.  

Best, Steve