PBoC moves to streamline gold imports amid rising reserves

The People’s Bank of China has issued a draft rule aimed at easing gold import restrictions, proposing several reforms to improve flexibility in bullion trade.

According to Bloomberg News, the measures would expand the use of “multi-use permits,” extend their validity to nine months from the current six, and remove usage limits that previously constrained importers. The draft also includes a provision to authorize more ports to clear bullion, making logistics smoother for refiners and banks.

While quotas will remain in place to help manage the yuan and maintain control over capital flows, the reforms signal an effort to fine-tune the system rather than completely liberalize it.

Import approvals are still expected to be rationed in line with currency policy objectives, but the changes could reduce bottlenecks for domestic demand and improve the efficiency of supply channels.

The proposed rules also touch on exports, though shipments out of China are likely to remain rare given strict capital controls and the PBoC’s strategic goal of building reserves.

China has extended its gold buying streak into a ninth consecutive month, lifting official holdings to about 73.96 million fine troy ounces as of August 2025. This accumulation underscores Beijing’s desire to diversify reserves, reduce reliance on the US dollar, and reinforce financial stability in an uncertain global environment.

For the global market, the reforms could provide greater clarity and predictability for bullion flows into China, the world’s largest consumer and importer of gold. Analysts suggest that a more flexible import regime could support continued strong demand from jewelers, investors, and central bank purchases, particularly at a time when global geopolitical tensions and expectations of US monetary easing have buoyed precious metal prices.

Looking ahead, the details of the final rule and its implementation timeline will be crucial for assessing its impact on both domestic supply conditions and international gold market dynamics. If adopted, the reforms could further cement China’s role as a key driver of global bullion demand while simultaneously strengthening the PBoC’s reserve-building strategy.