China fifth largest holder of gold in the world

April 25th, 2009 - 2:09 pm ICT by ANI  

New Delhi, Apr 25 (ANI): China earned 82.5 billion dollars from nearly two trillion dollars in foreign exchange reserves last year, and is now the fifth largest holder of gold in the world.

Hu Xiaolian, head o9f the State Administration of Foreign Exchange (SAFE), said on Friday that the 82.5 billion dollars return was an increase of 8 percent on the year before, and dismissed foreign media reports that China had lost “tens of billions of dollars” on the value of its reserves during the economic crisis.

“Not only has China managed to keep its foreign exchange reserves secure and in liquid investments, but it has also made a profit,” she said.

The China Daily quoted Hu as saying that China had boosted its gold reserves by 76 percent since 2003, making it the fifth largest holder of gold.

Beijing now has 1,054 tons of gold in its reserves; 454 tons more than it did in 2003.

Discussing the economic data, Hu said “a considerable proportion” of China’s earnings on its reserves were from diversified investment activities, but she gave no further details.

Hu said that SAFE managed the nation’s reserves well last year when many overseas investment funds were incurring huge losses.

The high returns were from diversification in multiple assets and holding various currencies, she added.

Commenting on China’s foreign exchange reserve portfolio, David Jiang, Asia-Pacific CEO of BNY Mellon Asset Management, said China should diversify its investment and move from US treasury bonds to inflation-proof notes and other assets. (ANI)

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