Gold Backed Yuan?
As readers of my newsletter and this blog know, I've been keeping an eye on the Chinese and others for indications of moves to gold-backing their currencies. Read below an article from the Dow Jones Newswire. China has been increasing their gold holdings for a while and some of our suspicions may prove to be accurate.
China Gold Reserves May Back Yuan Internationalization-Report
Mon, May 18 2009, 02:54 GMT
http://www.djnewswires.com/eu
China Gold Reserves May Back Yuan Internationalization-Report
SHANGHAI (Dow Jones)--China's gold reserves may serve as backing for the yuan as Beijing promotes its use overseas, said Zheng Lianghao, managing director of the World Gold Council's Far East division, the Shanghai Securities News reported Monday.
Zheng, who was speaking at a forum over the weekend, said increasing gold holdings would provide China with a useful hedge as the dollar faced the possibility of depreciation, according to the report.
In late April, the official Xinhua News Agency quoted Hu Xiaolian, the head of China's foreign exchange agency, as saying China's gold reserves had risen 454 metric tons since 2003 to 1,054 tons.
Newspaper Web site: http://www.cnstock.com
-By China Bureau, Dow Jones Newswires; 8621 6120-1200; djnews.shanghai@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=eRqsAYXy6dqsthoJAszoxA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
May 17, 2009 22:54 ET (02:54 GMT)
SHANGHAI (Dow Jones)--China's gold reserves may serve as backing for the yuan as Beijing promotes its use overseas, said Zheng Lianghao, managing director of the World Gold Council's Far East division, the Shanghai Securities News reported Monday.
Zheng, who was speaking at a forum over the weekend, said increasing gold holdings would provide China with a useful hedge as the dollar faced the possibility of depreciation, according to the report.
In late April, the official Xinhua News Agency quoted Hu Xiaolian, the head of China's foreign exchange agency, as saying China's gold reserves had risen 454 metric tons since 2003 to 1,054 tons.
Newspaper Web site: http://www.cnstock.com
-By China Bureau, Dow Jones Newswires; 8621 6120-1200; djnews.shanghai@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=eRqsAYXy6dqsthoJAszoxA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
May 17, 2009 22:54 ET (02:54 GMT)
posted by Steven P. Orlowski, CFP® at
8:56 AM
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