BRICS
March 17, 2026
China added one tonne of gold in February. Through this, the country extended its buying streak to 16 consecutive months. The pace has been consistent instead of aggressive, but over time, it has added up. China has accumulated around 50 tonnes during this period. This has further pushed its total holdings to a record level and has shifted the composition of its reserves. China’s latest move of pocketing gold amidst the global de-dollarization push certainly stands out.
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Swiss Bank UBP Bets Yuan Rises Against Dollar for the Next Decade
China’s gold reserves in 2026 stand at 2,309 tonnes. This is roughly valued at $371 billion at current prices near $5,000 per ounce. Gold accounts for about 10% of the country’s foreign exchange reserves. This is double the share seen around 20 months ago, according to data from the World Gold Council. This shift reflects the country’s rebalancing strategy, with gold playing a more important role than the dollar.
The steady accumulation comes as flows in Western markets show a different trend. Since Q2 2025, institutional investors have been reducing exposure to gold ETFs, with total sales reaching about $1 billion. Those positions didn’t disappear as they shifted to retail. Individual investors bought roughly $70 billion worth of gold ETFs over the same period. Inflows particularly saw a rise in the past six months.
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A similar move was seen in silver markets. Retail investors reportedly purchased about $10 billion in silver ETFs over the past year. Meanwhile, institutional investors were net sellers of about $200 million.
At the same time, currency forecasts are starting to show a much bigger shift. Union Bancaire Privée (UBP), a Swiss private bank managing more than $140 billion in assets, has identified the yuan as one of its strongest long-term positions. The bank expects the yuan vs dollar outlook to change. The yuan could trade near 6.70 per dollar in 2026. Carlos Casanova, senior economist at UBP, added,
“We believe the yuan will enter a decade-long secular bull rally, favored by fundamentals and policy reforms. Moreover, the yuan appears to be undervalued by 10%-50%.
UBP’s latest outlook aligns with China hoarding gold and the global de-dollarization trend. The country seems to be reducing its reliance on dollar-based assets while pouring into gold. Previous reporting by BlockNow also pointed to gold overtaking the US dollar as a reserve asset in part of the global system. Casanova said,
“The conflict in the Middle East puts pressure on US debt, further supporting our view that the US dollar could weaken more structurally.”
This series of moves does not seem to be lining up. China is still accumulating gold, institutional investors are reducing exposure, while retail demand continues to rise.
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