Breaking: Central Bank Chooses China for Gold-Vaulting
Authored by GoldFix
GFN – BEIJING: Cambodia announced today that it is among the first nations to place part of its official gold reserves under Chinese custody, marking the first tangible step in Beijing’s effort to position itself as a global bullion storage hub. China’s entry into the GoldVaulting buisness for Central banks was first discussed in China Enters Central Bank Gold Storage Business. It's implications were discussed days later in China Just Threatened the BiS (below)
China Just Threatened The BiS
London is not where central banks actually keep their gold. Most of it is held domestically. The reason London matters is because the BIS uses it as the hub for leasing and hedging. If countries begin placing their reserves in China—or more likely in the SGEI global vault network—that weakens the European supply pool available for leasing. Read full story
According to a report by Bloomberg News, the Southeast Asian country plans to store some of its reserves in a vault registered with the Shanghai Gold Exchange, located within Shenzhen’s bonded zone. The arrangement involves newly purchased bullion rather than the transfer of existing holdings, and several other nations are said to be evaluating similar arrangements as they consider diversifying from traditional storage centers such as London and Zurich.
“Beijing’s goal is to build a financial architecture less dependent on the dollar and Western institutions.”
The initiative is being pursued through the People’s Bank of China as part of a broader strategy to attract reserve custodianship to domestic vaults. Cambodia’s central bank governor previously said “a few locations” were under consideration for storing the nation’s gold, though she declined to name China directly.
“The National Bank of Cambodia currently holds about 54 tons of gold, representing roughly one quarter of its $26 billion in foreign exchange reserves.”
The People’s Bank of China and Cambodia’s central bank both declined to comment, though the development highlights a symbolic shift toward regional trust and financial interdependence.
The move underscores the deep and expanding relationship between China and Cambodia. Under President Xi Jinping’s Belt and Road Initiative, Chinese firms have financed major infrastructure projects across Cambodia, from airports to expressways. The two nations describe their partnership as an “ironclad friendship,” a bond reinforced by decades of political and economic cooperation.
“Globally, central banks have been steadily increasing gold reserves as insurance against geopolitical and currency risk, contributing to record-high bullion prices last month.”
Beijing’s effort to become a new custodial center positions it alongside London, New York, and Zurich, though repatriation trends in countries such as India and Serbia highlight the competing drive among some central banks to keep reserves closer to home.
**Breaking: Cambodia Chooses China to Vault its Gold
— VBL’s Ghost (@Sorenthek) November 5, 2025
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