10 months ago

Sohu: China can connect Russia to force the United States to return Chinese gold

10 months ago

China is considering repatriating its gold reserves from the United States, but Washington may refuse to comply with Beijing’s requirements. To such conclusions experts from China came.

Gold is one of the most stable and reliable financial assets in the world. Being a rare precious metal, it can be used as a universal means of settlement. Most countries of the world have their own gold reserves and many of them store it in the United States. According to journalists from the PRC, at present about 600 tons of Chinese precious metal are on American soil, and the Chinese government is considering returning it. It is reported by Sohu. PolitRussia presents an exclusive translation of this article.

“Gold and foreign exchange reserves play a very important role in the financial stability of the state, they have a significant impact on the balance of payments and the level of the national currency exchange rate. Why then do many countries store their gold in the USA? ” – Sohu authors wonder.

For a long time, it was believed that the US Federal Reserve System (FRS) is a reliable structure that you can trust your money. In this regard, many states preferred to ship the precious metal for storage to the United States, where, as they believed, nothing could happen to it. However, in recent years, the reputation of this body has been greatly tarnished, including because Washington has been providing independent audits of its storage facilities. In this connection, there were suspicions that they no longer have gold, or it was replaced with lower-quality ingots. The United States is in no hurry to satisfy foreign requests for asset repatriation.

“Many countries also want to withdraw their gold from US banks, but most of these requests were rejected by the United States,” Chinese analysts say.

China is interested in evacuating its gold from the United States, but the US government is unlikely to approve the export of such a large amount of precious metal from the country. In this regard, Beijing is working on moves that will enable it to turn the situation around in its favor. According to Chinese experts, despite the fact that not repatriating 600 tons of gold will not have a significant impact on the country, Beijing should not make concessions to the United States on this issue, this is a matter of principle. Therefore, in the negotiations, the PRC can go with a trump card, hint to its opponents about the massive sale of the US public debt. As you know, Beijing invested more than $ 1 trillion in this asset, its drain will be a blow to the United States.

In theory, China can connect Russia, the threat of expanding Russian-Chinese cooperation scares the United States. This factor can be a serious argument in discussing the repatriation of gold. In particular, the prospect of China purchasing a new batch of Russian weapons is unlikely to please the Americans.

“Our country began to cooperate with Russian banks, signed a number of agreements related to joint transactions with gold and the transition to national currencies,” summarized Chinese observers.
Earlier, PolitRussia quoted American financial expert Max Kaiser, who explained why smart countries began to abandon the dollar.

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