Shedding the Dollar: China’s Treasury Holdings Drop as Gold Reserves Hit New Highs

Fri Apr 24 2026

In March 2026, China’s central bank notched its 17th consecutive month of positive gold accumulation, extending one of the most consistent buying sprees among major economies in recent years.

This steady trend of official demand has continued throughout gold market volatility, geopolitical uncertainty, and global economic destabilization. Instead of acting as obstacles, these financial disruptions have hastened Beijing’s rush into physical gold — a trend seen across fast-growing economies.

The PBOC’s Gold Reserves Reach Over 2,300 Tonnes

The People’s Bank of China (PBOC), the country’s central bank, added roughly five tonnes of gold in March, elevating its total holdings to around 2,313 tonnes, according to the World Gold Council (WGC). This marks the 17th consecutive month of positive gold inflows, reinforcing a steady, policy-driven approach to reserve accumulation.

The recent easing of gold prices over the past few months, following a record high near $5,600/oz, has actually reduced the total value of China’s gold reserves. Overall, Beijing’s physical holdings fell from $387 billion to $342 billion. What many experts view as a temporary dip in the gold market has presented a buying opportunity for central banks.

A Major Shift in Beijing’s Reserve Strategy

This sustained accumulation reflects a broader global trend. In recent years, central banks have sharply increased their gold demand, surpassing 1,000 tonnes annually between 2022 and 2024 and remaining elevated at 863 tonnes in 2025. Last year, this coincided with a record 5,000 tonnes of global gold demand.

China has been a key driver of this shift. After remaining largely stagnant between 2017 and 2021, the PBOC’s gold holdings began to rise again in late 2022, marking a clear turning point. Between 2022 and 2023, China increased its reserves by roughly 10%, with steady additions continuing through 2025 and Q1 2026.

Total holdings now stand at approximately 2,313 tonnes, up from about 1,842 tonnes in 2016, a roughly 26% increase in less than a decade, per the Chinese State Administration of Foreign Exchange.

Chinese Gold ETF Demand Breaks Records

While central banks continue to accumulate gold, retail investor flows are reinforcing the same trend at scale. Chinese gold exchange-traded funds (ETFs) recorded $8.5 billion in inflows during Q1, the strongest quarterly total on record.

Source: WGC