There are rumors that the Chinese central bank is storing gold at the Federal Reserve Bank in New York. If that is true, it would be an important aspect in the US-China trade war. But according to my analysis, this claim is wrong.An old rumor broke out in May 2020 after the Global Times reported. A Chinese analyst turned to the Global Times and said the People’s Bank of China (PBoC) would store part of its gold with the Federal Reserve Bank of New York (FRBNY).
The first time I came across this rumor was in 2013 on a website from one of the largest Chinese lenders, the Agriculture Bank of China (ABC). ABC’s Liu Zhongbo said:
“Statistics show that China is storing at least 600 tons of gold with the US Federal Reserve …”
There are also other websites and blogs that mention 600 tons.Unfortunately, I was unable to contact the analyst (Dong Dengxin) quoted in the Global Times or ABC analyst Liu Zhongbo. I was still able to find official statistics to show that gold owned by the PBoC is being stored in New York.
But I collected some valuable information from other sources that I have in China. In connection with data from the Chinese State Administration of Foreign Exchange (SAFE), my conclusion is that the PBoC does not store gold with the FRBNY.