China appears to be adjusting its foreign reserve strategy by combining the sale of US government bonds with an accumulation of gold holdings. This shift has been observed and reported by Baijiahao Portal, which tracks changes in national reserves and monetary policy trends.
Data up to late April show a notable rise in China’s foreign exchange reserves, increasing by 20.9 billion dollars to reach about 3.2 trillion dollars. Parallel to this, gold reserves rose to roughly 66.76 million ounces, an increase of around 260 thousand ounces from the previous month. The combination of de‑risking dollar exposure and expanding gold holdings signals a deliberate effort to diversify assets amid a volatile global liquidity environment. Observers interpret these moves as part of a broader strategy to reduce reliance on the US dollar in the face of perceived risks attached to its continued dominance.
The report also points to a broader trend triggered by sanctions and asset freezes targeting Russia. These actions have created a sense of unpredictability around US-dominated financial systems, prompting several countries to reassess the safety and reliability of relying primarily on the dollar for official reserves and international settlement needs.
From the perspective of the article, the pattern of reducing exposure to US government bonds is becoming more common among large reserve holders. China is cited as an example, with authorities shifting toward greater gold accumulation as part of a strategy to secure wealth against potential shocks in the US fiscal and monetary landscape. In this context, some analysts argue that gold could be poised to rise in price if geopolitical or economic instability heightens demand for a tangible store of value independent of the dollar’s trajectory.
During early May, economist Evgeny Kogan, affiliated with the Higher School of Economics, commented on the development, noting that China appears to be reallocating part of its portfolio away from US Treasury securities while continuing to hold dollar-denominated assets in a diversified mix. This stance reflects a cautious approach to currency risk and a desire to retain flexibility as global financial conditions evolve. The evolving balance between bond holdings and gold reserves underscores a broader conversation about how major economies manage reserve assets in an era of heightened uncertainty and potential shifts in the global monetary order.