Officials urge converting some forex into gold

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Officials urge converting some forex into gold
BEIJING - The latest issue of China Money Market magazine carries an article of two officials of China's central bank suggesting the conversion of some foreign exchange reserves into gold reserves. The magazine is under the administration of the central bank.
The article says it would be advisable to convert part of the country's foreign exchange reserves into gold so as to avoid the risk of depreciation of the US dollar. This step would protect and
increase the value of China's foreign exchange reserve assets, it says.
But the Shanghai Securities News quotes unnamed industry sources as saying that the article, written by Zhao Qingming with the central bank's Finance Research Institute and Luo Bin with the central bank's Accounting and Financial Department, may not necessarily reflect the attitude of the central bank, and represents only personal academic opinion.
China's foreign exchange reserves reached US$875.07 billion by the end of March this year, the highest in the world. The central bank's gold reserve, meanwhile, stood at 19.29 million ounces at the end of March, unchanged for 40 months since December 2002.