China sells dollars and buys gold as tensions rise

SHANGHAI — China reduced its holdings of U.S. government debt again in April even as Beijing’s gold reserves continued to grow, diversifying away from the dollar as ties with Washington fray. China’s gold reserves have grown for six straight months since December, the first time the country increased its holdings of the precious metal in more than two years. China’s Treasury stockpile long stayed above $1.2 trillion, but after the yuan’s sharp depreciation in 2015, Beijing is believed to have sold some of the securities to fund intervention to shore up its currency.

Source: asia.nikkei.com