China Reports 76% Jump in Gold Reserves

 

China has increased its gold reserves by 76 percent since 2003 to 1,054 tons and now ranks fifth among nations with the biggest holdings, a state news agency reported Friday.

The figure reported by the Xinhua News Agency would rank China behind the United States, Germany, France and Italy in reserves, according to data from the World Gold Council, an industry group.

Xinhua said Hu Xiaolian, head of the State Administration of Foreign Exchange, disclosed the figures in an interview.

Beijing has steadily added to its holdings of foreign assets amid an export boom that has swelled its trade surplus. Its foreign currency reserves are the largest in the world at just over $1.9 trillion.

Premier Wen Jiabao expressed concern last month about the safety of Beijing’s holdings of U.S. government debt and appealed to Washington to avoid doing anything, in response to its financial crisis, that might weaken the dollar.

Also last month, the central bank governor called for a new global currency to replace the dollar, which is widely used for trade and storing national reserves.

Beijing also added to its gold reserves twice earlier this decade, raising its holdings from 394 tons to 500 tons in 2001, and to 600 tonnes in 2003, Hu said.

4/24/2009 5:13 AM BEIJING (AP)