China Tells

China’s Foreign Exchange Reserve has grown exponentially in the last decade from less than 500 Billion USD to more than 2 Trillion USD. At the same time, however, most of the FX Reserve is in the form of USD. Due to the fact that USD’s value has been destabilized in the recent years, it is natural for China government to think of diversifying the reserve. Gold as the ultimate form of value, should be a preferred asset class for diversification. The gold portion in China’s FX Reserve has been decreasing steadily from 2% to 1% by 2008. However China government has recently bought some gold on the public market and the portion has been pushed up back to about 1.5%. In the foreseeable future, any dip in the price of Gold should be a good opportunity for China government to increase gold holding in the FX Reserve.

中国的外汇储备自2000年开始每年都高速增长，到最近的2009年已经突破2万亿美元。然而外汇储备大部分都是美元，因此美元币值如果不稳定将给国家和人民带来灾难性的后果。要分散风险须将美元换成其他资产，黄金应该是一个有效的避险资产。目前黄金在外汇储备中仅占1.5%，还有很大的增长空间。