China proposes rule changes to ease gold imports and exports

China sought to ease licensing rules for gold imports and exports, as the world’s largest consumer of the precious metal continues to diversify its reserves away from US dollars.

The country plans to expand the use of “multi-use permits,” a faster approval system, by increasing the number of ports that can accept them, according to a draft proposal from the People’s Bank of China. The central bank also plans to extend their validity to nine months and remove limits on the number of times each permit can be used.

The latest development builds on the PBOC’s 2016 initiative to simplify procedures for cross-border trade in gold by reducing paperwork and speeding up imports.

China’s PBOC extended its gold buying spree for a 10th month in August, while demand in the country for investment bars and coins has also remained resilient. Gold has surged by almost 40% this year on the back of central-bank buying, rising geopolitical risks and the prospect of US interest rate cuts.

The move to ease permit rules will “enhance vitality and respond to external shocks by improving business environment at ports,” according to the explanation to the proposal. The PBOC is seeking feedback until Oct. 13.

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