TOKYO — One of the worst-kept secrets in global central banking is the extent to which Chinese officials are swapping dollars for gold.
Governor Yi Gang’s team at the People’s Bank of China isn’t admitting as much. The PBOC doesn’t have to, though, given the clear policy trajectory Chinese leader Xi Jinping has pursued in recent years: internationalizing of the yuan as the top rival to the dollar.
Xi’s position hasn’t changed so much as other governments are catching on that trust is waning in the global reserve currency and an alternative to the dollar is badly needed.
