Sjeltur

Today Hu Xiaolan, head of the State Administration of Foreign Exchange (SAFE), said in an interview with Xinhua news agency that China has now a gold reserve of 1,054 tons. This is an increase of 454 tons since 2003.

It’s no secret the Chinese are very worried about the US dollar as the world reserve currency, last year the signs were already there, but recently China has been talking about it openly, more than once. Back then there were reports that China wants to expand their gold reserve to 4,000 tons, now they actually say out loud that China wants to increase the gold reserve even more.

Hou Huimin, vice general secretary of the China Gold Association, said China should build its reserves to 5,000 tons. According to him: “China should hold more because of its new international status, and because of the financial crisis. The US dollar value is changing fast, and it may retreat from being the international reserve currency. If that happens, whoever holds gold will be at an advantage.”

Very true.