China sets up largest gold sector fund for nations along ancient Silk Road [ Current Affairs ]
Republic of China has set up a gold sector fund involving 65 countries along the ancient Silk Road. This Silk Road has been set up in China’s northwest Xi’an city during ongoing forum on investment and trade. Shanghai Gold Exchange (SGE) will be financed and is expected to raise 16.1 billion dollars in three phases.
- With opening this Silk Road, it is the largest fund set up by China in the gold sector. Maritime Silk Road (MSR) and Silk Road Economic Belt have invested in the fund and around 55 countries which fall along the routes of 21st-Century.
- By setting up this fund China is seeking to increase the influence of its domestic currency Renminbi (RMB) in the international gold pricing by opening the domestic gold market to international investors.
- This fund will facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal.
- At present, China is the world’s largest gold producer and also a major importer and consumer of gold. Republic of china will be also invested in gold mining in countries along the Silk Road and also to increase exploration in countries such as Afghanistan and Kazakhstan.
- Published on: May 26, 2015