PBOC Monetary Policy Member Calls For Direct Cash Transfers
China has been an active gold buyer in 2024, particularly in the first quarter. During which large import demand and central bank purchases helped drive a rally that has pushed the gold price above $2,500 per ounce.
Yet despite conditions that have already resulted in strong gold demand, now Huang Yiping, a member of the People's Bank of China's monetary policy committee, is calling for increased inflation and direct money transfers to citizens as the Chinese market continues to struggle.
In a recent statement Yiping said:
So at a time when we're already seeing the world shift towards gold, as eastern nations and central banks have become more concerned about global government debt loads and central bank balance sheets than ever, one of the members setting monetary policy for China wants to send cash directly to citizens in order to drive prices up even faster.
Sadly, this isn’t the first time we’ve seen policies like this. And in the economic environment we’re entering, it probably won’t be the last either.
Yet this is the type of reason why the demand for gold is already as strong as it is. And as the markets watch China's future policy recommendations closely, if the PBOC does move towards more easing, or any of the ideas that Yiping is suggesting, that will just continue to act as support for the gold price.
Source: Arcadia Economics
Jerusalem Post Store
`; document.getElementById("linkPremium").innerHTML = cont; var divWithLink = document.getElementById("premium-link"); if (divWithLink !== null && divWithLink !== 'undefined') { divWithLink.style.border = "solid 1px #cb0f3e"; divWithLink.style.textAlign = "center"; divWithLink.style.marginBottom = "15px"; divWithLink.style.marginTop = "15px"; divWithLink.style.width = "100%"; divWithLink.style.backgroundColor = "#122952"; divWithLink.style.color = "#ffffff"; divWithLink.style.lineHeight = "1.5"; } } (function (v, i) { });