Latest news with #de-dollarisation
Reuters
5 days ago
- Business
- Reuters
Central banks on track for 4th year of massive gold purchases, Metals Focus says
LONDON, June 5 (Reuters) - Central banks worldwide are on track to buy 1,000 metric tons of gold in 2025, which would be their fourth year of massive purchases as they diversify reserves from dollar-denominated assets into bullion, consultancy Metals Focus said. Gold prices are up 29% so far this year after hitting a record high of $3,500 per troy ounce in April on geopolitical tensions and economic uncertainty as U.S. President Donald Trump continues to roll out his tariff policies. The price rally has so far kept purchases by central banks, a crucial category of demand, unaffected with the first-quarter buying in line with the 2022-24 quarterly average, Metals Focus said in its annual report on Thursday. "The drivers that have underpinned de-dollarisation in recent years remain firmly in place," the consultancy said. "If anything, President Trump's unpredictable policy stance, his public criticism of (Fed chair) Jerome Powell and the deteriorating U.S. fiscal outlook have further eroded confidence in the U.S. dollar and Treasuries as ultimate safe-haven assets." "Elevated geopolitical tensions since the start of his administration have also curtailed the appeal of U.S. assets." Accounting for almost one fourth of total demand, central banks are the third largest category of gold consumption after the jewellery sector and physical investment. In 2025, purchases from central banks are expected to fall by 8% from last year's record high of 1,086 tons. In January-March, Poland, Azerbaijan, and China - consistent buyers in recent years - led the officially reported buying, Metals Focus said, adding that steady inflows into Iran also suggest further purchases by the Central Bank of Iran. Meanwhile, jewellery demand for bullion has been hit hard by the price rally. Gold jewellery fabrication fell 9% to 2,011 tons in 2024 and is expected to deliver a 16% slump this year with India and China accounting for much of this decline. The consultancy expects average gold prices to rise by 35% this year after 23% growth in 2024, and reach $3,210 per ounce "with further strength likely into 2026". Following are Metals Focus's gold supply and demand numbers, in metric tons:
Yahoo
5 days ago
- Business
- Yahoo
Central banks on track for 4th year of massive gold purchases, Metals Focus says
By Polina Devitt LONDON (Reuters) - Central banks worldwide are on track to buy 1,000 metric tons of gold in 2025, which would be their fourth year of massive purchases as they diversify reserves from dollar-denominated assets into bullion, consultancy Metals Focus said. Gold prices are up 29% so far this year after hitting a record high of $3,500 per troy ounce in April on geopolitical tensions and economic uncertainty as U.S. President Donald Trump continues to roll out his tariff policies. The price rally has so far kept purchases by central banks, a crucial category of demand, unaffected with the first-quarter buying in line with the 2022-24 quarterly average, Metals Focus said in its annual report on Thursday. "The drivers that have underpinned de-dollarisation in recent years remain firmly in place," the consultancy said. "If anything, President Trump's unpredictable policy stance, his public criticism of (Fed chair) Jerome Powell and the deteriorating U.S. fiscal outlook have further eroded confidence in the U.S. dollar and Treasuries as ultimate safe-haven assets." "Elevated geopolitical tensions since the start of his administration have also curtailed the appeal of U.S. assets." Accounting for almost one fourth of total demand, central banks are the third largest category of gold consumption after the jewellery sector and physical investment. In 2025, purchases from central banks are expected to fall by 8% from last year's record high of 1,086 tons. In January-March, Poland, Azerbaijan, and China - consistent buyers in recent years - led the officially reported buying, Metals Focus said, adding that steady inflows into Iran also suggest further purchases by the Central Bank of Iran. Meanwhile, jewellery demand for bullion has been hit hard by the price rally. Gold jewellery fabrication fell 9% to 2,011 tons in 2024 and is expected to deliver a 16% slump this year with India and China accounting for much of this decline. The consultancy expects average gold prices to rise by 35% this year after 23% growth in 2024, and reach $3,210 per ounce "with further strength likely into 2026". Following are Metals Focus's gold supply and demand numbers, in metric tons: 2023 2024 2025F Change Change 24/23 25/24 SUPPLY Mine production 3,640 3,661 3,694 1% 1% Old scrap 1,234 1,368 1,368 11% 0% Net hedging supply 69 - 25 Total supply 4,943 5,029 5,087 2% 1% DEMAND Jewellery fabrication 2,206 2,011 1,696 -9% -16% Industrial demand 305 326 332 7% 2% Net physical investment 1,207 1,191 1,218 -1% 2% Net hedging demand - 55 - Net central bank buying 1,051 1,086 1,000 3% -8% Total demand 4,769 4,669 4,246 -2% -9% Market balance 175 359 840 106% 134% Net investment in ETPs -244 -7 500 Market balance less ETPs 419 366 340 -13% -7% Gold price ($/oz) 1,941 2,386 3,210 23% 35% Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
5 days ago
- Business
- Zawya
Indonesia Cements Status as China's Top ASEAN Partner with Historic Currency Pact – EBC Financial Group Insights
With bilateral trade projected to hit USD160B in 2025, Indonesia's Yuan-Rupiah pact with China for de-dollarisation and reshapes ASEAN's financial future. JAKARTA, INDONESIA - Media OutReach Newswire - 5 June 2025 - As one of China's largest ASEAN trading partners, with bilateral commerce reaching USD147.80 billion in 2024 (6.1% YoY growth), Indonesia has solidified its economic ties with China. During Chinese Premier Li Qiang's state visit ahead of the ASEAN-GCC-China Summit, the two nations signed four new MoUs—most critically, an upgraded Local Currency Settlement (LCS) pact between Bank Indonesia (BI) and the People's Bank of China (PBOC). EBC Financial Group (EBC), a leading brokerage firm, examines how this agreement redefines Indonesia's economic resilience. Sectoral Wins: The Foundation for Deeper Ties The accords support Indonesia's LCS framework across key sectors. Trade and tourism will benefit from streamlined visa policies, targeting 2 million Chinese visitors in 2025. A USD5 billion commitment for twin industrial parks (Fujian-Batang SEZ) will create over 100,000 jobs. Soft power initiatives, like joint TB vaccine research and media collaboration, strengthen people-to-people ties. The LCS Breakthrough: Financial Sovereignty in Action The BI-PBOC agreement enables Rupiah-Yuan use in capital accounts, offering three advantages: Trade Shield: Bilateral trade (USD147.80B in 2024, +6.1% YoY) avoids costly USD conversions for exports like palm oil and nickel. Rate Cut Buffer: BI gains flexibility with 5.3% of reserves in yuan, easing policy without destabilising the Rupiah. BRICS Leverage: Access to New Development Bank funding supports President Prabowo's USD20B infrastructure agenda, reducing dollar reliance. "This isn't just about cutting transaction fees—it's a recalibration of Indonesia's financial DNA," says David Barrett, CEO of EBC Financial Group (UK) Ltd. "By enabling Yuan-backed trade and investment flows, BI is building a hedge against Fed policy shocks." ASEAN's New Template: Unity Amid Global Realignments China-ASEAN trade hit USD330B (Jan-Apr 2025, +9.2% YoY), with Indonesia leading regional integration. The upgraded CAFTA 3.0 and ASEAN-GCC-China Summit highlight diversified economic partnerships. As Barrett notes, "Indonesia is crafting a blueprint for monetary diversification. The Local Currency Settlement (LCS) deal illustrates how mid-sized economies can reduce overreliance on a single dominant currency, balancing regional cohesion with global standards." Hashtag: #EBCFinancialGroup #BRICS The issuer is solely responsible for the content of this announcement. EBC Financial Group
Malay Mail
5 days ago
- Business
- Malay Mail
Indonesia Cements Status as China's Top ASEAN Partner with Historic Currency Pact – EBC Financial Group Insights
With bilateral trade projected to hit USD160B in 2025, Indonesia's Yuan-Rupiah pact with China for de-dollarisation and reshapes ASEAN's financial future. Trade Shield : Bilateral trade (USD147.80B in 2024, +6.1% YoY) avoids costly USD conversions for exports like palm oil and nickel. : Bilateral trade (USD147.80B in 2024, +6.1% YoY) avoids costly USD conversions for exports like palm oil and nickel. Rate Cut Buffer : BI gains flexibility with 5.3% of reserves in yuan, easing policy without destabilising the Rupiah. : BI gains flexibility with 5.3% of reserves in yuan, easing policy without destabilising the Rupiah. BRICS Leverage: Access to New Development Bank funding supports President Prabowo's USD20B infrastructure agenda, reducing dollar reliance. JAKARTA, INDONESIA - Media OutReach Newswire - 5 June 2025 - As one of China's largest ASEAN trading partners, with bilateral commerce reaching USD147.80 billion in 2024 (6.1% YoY growth), Indonesia has solidified its economic ties with China. During Chinese Premier Li Qiang's state visit ahead of the ASEAN-GCC-China Summit, the two nations signed four new MoUs—most critically, an upgraded Local Currency Settlement (LCS) pact between Bank Indonesia (BI) and the People's Bank of China (PBOC). EBC Financial Group (EBC), a leading brokerage firm, examines how this agreement redefines Indonesia's economic accords support Indonesia's LCS framework across key sectors. Trade and tourism will benefit from streamlined visa policies, targeting 2 million Chinese visitors in 2025. A USD5 billion commitment for twin industrial parks (Fujian-Batang SEZ) will create over 100,000 jobs. Soft power initiatives, like joint TB vaccine research and media collaboration, strengthen people-to-people BI-PBOC agreement enables Rupiah-Yuan use in capital accounts, offering three advantages:"This isn't just about cutting transaction fees—it's a recalibration of Indonesia's financial DNA," says David Barrett, CEO of EBC Financial Group (UK) Ltd. "By enabling Yuan-backed trade and investment flows, BI is building a hedge against Fed policy shocks."China-ASEAN trade hit USD330B (Jan-Apr 2025, +9.2% YoY), with Indonesia leading regional integration. The upgraded CAFTA 3.0 and ASEAN-GCC-China Summit highlight diversified economic partnerships. As Barrett notes, "Indonesia is crafting a blueprint for monetary diversification. The Local Currency Settlement (LCS) deal illustrates how mid-sized economies can reduce overreliance on a single dominant currency, balancing regional cohesion with global standards."Hashtag: #EBCFinancialGroup #BRICS The issuer is solely responsible for the content of this announcement.
South China Morning Post
24-05-2025
- Business
- South China Morning Post
Why China's yuan needs Hong Kong to reach new international heights
The third and final part of the decoupling series looks at how Hong Kong's financial system is crucial for China to advance the internationalisation of the yuan amid geopolitical tensions and discussions on de-dollarisation. Read part one and part two Anyone seeking evidence that international businesses are actively looking to diversify from the US dollar can find it in Qatar, according to Mary Huen Wai-yi, chairwoman of the Hong Kong Association of Banks. Businesses in the affluent Middle Eastern nation are keen to take advantage of the yuan, also known as the renminbi (RMB), by using a 'toolbox' available in Hong Kong, she said after returning from a government-led trip two weeks ago. Members of the 10,000-member Qatar Chamber of Commerce and Industry raised questions like: 'if I have a joint venture, buy some capabilities from China, and do an investment together, how can the RMB pool help?' Huen said. 'We told them we have a big pool and different capabilities like settlement, payment, hedging [and] swaps', which can give them a level of comfort as they consider investments, added Huen, who is also the CEO of Hong Kong, Greater China and North Asia at Standard Chartered, one of the city's three note-issuing banks. An increase in yuan-denominated trades and investments should thrill Hong Kong's financial sector because it would translate to more deals and opportunities, especially amid strengthening ties between China and oil-rich Qatar as it steers its economy into new energy and technology, she added. The trend also showcases that the US' trade war has spilled over to the financial market, prompting more countries and businesses to consider alternatives to the dominant US dollar in international trades, payments and investments. This urgency to 'de-dollarise' dovetails with China's effort to internationalise its currency, a strategy that dates back to the 2008 financial crisis and aims to mitigate risks and assert financial independence amid escalating Sino-American decoupling.
