Gold reserves to reinforce confidence in yuan
Print Edition
The rise of gold as part of China鈥檚 international reserves and the central bank publishing yuan-denominated external debts are conducive to a stable yuan, analysts said yesterday.
Official data showed the country鈥檚 gold reserves hit 1,658 tons at the end of June, jumping nearly 60 percent compared with the figure last released by China鈥檚 central bank at the end of April 2009.
Although countries have long abandoned the gold standard as the basis of monetary systems, gold reserve volume remains an important factor in market assessment of a country鈥檚 currency value due to its price stability, according to analysts.
The central bank said the gold reserve increase was in line with the nation鈥檚 needs to keep adjusting the structure of its international reserves assets in order to ensure the assets鈥 security, liquidity and value increase.
鈥淐hina鈥檚 gold reserves will strengthen yuan holders鈥 confidence, which will help stabilize the exchange rate and facilitate the internationalization of the yuan,鈥 said Xu Mingqi, a researcher with the Shanghai Academy of Social Sciences.
鈥淎 more important role of gold reserves lies in risk prevention. It helps boost confidence in a country鈥檚 currency, and reflect the country鈥檚 economic and financial strength,鈥 said Ding Zhijie, a professor at the University of International Business and Economics.
China is the world鈥檚 largest gold producer and a major gold consumer. The updated figure also revealed China surpassed Russia to become the fifth-largest holder of gold reserves around the world, behind the US, Germany, Italy and France.
Gold reserves account for a small part of China鈥檚 foreign exchange reserves, which hit US$3.69 trillion as of the end of June. The central bank said it would flexibly adjust its gold holdings according to its reserves and investment needs in the future.
The data came as China looks to advance its currency鈥檚 status as a key international reserve currency, which is now a prime candidate for the International Monetary Fund鈥檚 special drawing rights (SDR).
The international reserves data was released by using the special data dissemination standard (SDDS) established by the IMF in 1996 to enhance the availability of timely and comprehensive statistics, according to the People鈥檚 Bank of China, the country鈥檚 central bank.
By using the standard, the central bank has widened its external debt calculations by introducing yuan-denominated external debt for the first time, which stood at 4.94 trillion yuan, about 48.1 percent of China鈥檚 total foreign debt, central bank data showed.
鈥淚mprovement of the nation鈥檚 financial data disclosure, would better meet the IMF鈥檚 requirements on information disclosure, and have a positive impact on yuan鈥檚 inclusion into the SDR,鈥 said Xiao Lisheng, a research associate at the Chinese Academy of Social Sciences.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
