China is now aiming to double its global dominance and is experimenting with multiple new methods to increase its global prowess. The nation has long targeted yuan internationalization as one of the key methods to pursue global power, but is now working to expand a new global narrative —one that sees the nation emerging as a leading bullion hub.

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Cambodia To Store Its Gold With China: A New Narrative In Works?

Cambodia has now become one of the first countries to take up China’s offer to store foreign gold, per a recent Bloomberg report. The report expands on how China has permitted Cambodia to store its gold with the nation to promote a new bullion hub narrative.

Per the details shared by the outlet, Cambodia is planning to store some of its gold in a Chinese vault registered with the Shanghai Gold Exchange in the Shenzhen bonded zone. The details were confirmed by a few people, who have decided to stay anonymous, as the matter is of a sensitive nature.

In a bid to defeat the global push towards dollarization, China is devising unique ways to reduce its reliance on the USD. For instance, the nation has always pushed for Yuan internationalization, triggering currency wars with the dollar actively. Moreover, the nation’s foreign gold storage facility is being dubbed as a lucrative way to label Beijing as an emerging bullion hub.

China Is Draining London Gold Market, Analyst Warns

Analyst Luke Gromen believes China is playing a cautious game, the one that targets London Gold Markets in particular. Gromen shared how China is draining the London Gold Market supply, which could reshape the markets as we know them.

“China is using what has always been the dollar’s Achilles heel, the unallocated gold market in London. If demand for gold rises, there are two options. You can let the price rise and allow the market to balance naturally, or you can expand paper gold claims to meet that demand without releasing physical gold. For decades, London has mostly done the latter. But now, as China settles more trade in yuan and gold, it’s draining physical supply from London. Eventually, policymakers in the U.S. and UK will have to decide how much gold they’re willing to let go before they allow prices to rise. That decision could reshape global monetary power.”

Also Read: China Keeps 13% Tariffs on US Soybeans