China, the world’s largest consumer of gold, is planning to relax licensing norms for the export and import of the yellow metal, as the nation continues to steer away its reserves from the US dollar.According to a draft proposal from the People’s Bank of China (PBOC), the country plans to expand the use of “multi-use permits,” a quicker approval system, by increasing the number of ports authorised to accept them. The central bank also intends to extend their validity to nine months and remove limitations on how the number of times each permit can be used, Bloomberg reported.The latest step comes on the back of PBOC’s 2016 initiative, which aimed to streamline cross-border gold trade by cutting down paperwork and speeding up imports.China’s central bank has been steadily boosting its gold reserves, extending its buying spree for a 10th consecutive month in August. Domestic demand for investment bars and coins has also stayed strong. According to Bloomberg, gold prices have climbed nearly 40% this year, fuelled by central-bank purchases, heightened geopolitical tensions, and expectations of US interest rate cuts.The PBOC said the relaxation of permit rules would “enhance vitality and respond to external shocks by improving business environment at ports.” The proposal is open for public feedback until October 13.
