Current Affairs PDF Sales

China sets up largest gold sector fund for nations along ancient silk board

During ongoing forum on  trade and investment, in China’s northwest Xian city, gold sector fund for 65 nations along the ancient silk board had been set up. The fund will be lead by Shanghai Gold Exchange[SGE]  and 16.1 billion dollars  in 3 phases is expected to be raised.

  • It is the largest fund set up by China in the gold sector.
  • It is expected that around 60 countries which fall along the routes of 21st Century Maritime Silk Road  Or MSR and Silk Road Economic Belt have invested in the fund.
  • Gold purchase for the  central banks of member states to increase their holdings of gold would be done by this fund.
  • Funds will also be invested in gold mining in countries along the silk road and to increase in exploration in Afghanistan and Kazakhstan.
  • China inspite being world’s largest producer of gold and a major importer and gold consumer, its share in the international gold trade is very small and does not have anything in pricing of gold.
  • Setting up this fund  would help China to increase  its domestic currency Renminbi [RMB] in international pricing of gold by opening the domestic gold markets to international investors.

Shanghai gold exchange

  • It is non-profit self regulatory, approved by state council organised by  Peoples Bank of India.
  • Trading of gold,silver,platinum and other precious metals is done.
  • Founded in they year 2002.
  • Headquarters is in Shanghai,China.
  • Current Chairman is Wang Zhe.

Renminbi RMB- some informtions

  • It is the official currency of People Republic of China.
  • The Yuan is the basic unit of renminbi, which also refers to Chinese currency.
  • ISO code for renminbi is  CNY or Chinese Yuan.
  • The currency is issued by  Peoples Bank of China.
  • One renminbi is 10 Indian rupees and 0.16 USD.