You Are Here: Home >> Business >> Markets >> United States >> China "will always keep gold in mind as an option in...

China "will always keep gold in mind as an option in reserve assets" - Wealth Management

March 13,2013


Central banker says it won't be telegraphing its purchases, however

China

1

A top Chinese central banker reaffirmed Beijing's continuing strategy of acquiring more gold without driving up prices on the global marketplace. Take with a grain of salt, however, his pledge of gold constituting a 2% maximum of its total foreign exchange reserves. Yi Gang's statement also shows how China is indirectly accumulating gold by allowing its citizens to purchase it:

China is likely to limit its gold holdings to 2 percent of its total foreign exchange reserves, said Yi Gang, a deputy Chinese central bank governor.

The People's Bank of China last made known changes to its gold reserves in 2009, announcing that it held 1,054 metric tons. The bank hasn't made any revisions since then. That's about 1.8 percent of its total reserves, according to data from the World Gold Council.

"If the Chinese government were to buy too much gold, gold prices would surge, a scenario that will hurt Chinese consumers," Yi said today in a press briefing in Beijing. "We can only invest about 1-2 percent of the foreign exchange reserves into gold because the market is too small." ...

About two-thirds of China's foreign reserves are dollar-denominated and another quarter is in euros, according to Yao Wei, a Hong Kong-based economist at Societe Generale SA. China is now encouraging companies and residents to keep more foreign currency in a strategy known as "hiding foreign currencies among people," meaning that the government's foreign reserves may "gradually fall," Yang said. ...

"We will always keep gold in mind as an option in reserve assets and investments," Yi said. "We are able to import 500-600 tons a year, or more, but we will also take into consideration a stable gold market."



379

views

PDF Print Email Report

Contact

Richard W Davey Organization

Richard Davey

Featured Sections

Featured News

Explore more in China "will always keep...

Users

News

Us

Channels

Partners

Copyright © 2013 Free-Press-Release Inc. All rights reserved.

About UsTermsPrivacyContact Us

Share with your friends

Tell your friends the great news you've just found!



Unable to connect the network ,please try again.

Please enter the right code in the image!

Congratulations!

Your message has been sent to your friends.

Contact to the author

Send a message to the author!



Unable to connect the network ,please try again.

Please enter the right code in the image!

Congratulations!

Your message has been sent to the author.

Report to Free-Press-Release.com

Report to Free-Press-Release.com



Unable to connect the network ,please try again.

Please enter the right code in the image!

Congratulations!

Your message has been sent to the author.