Experts suggest using reserves to increase gold to support RMB internationalization

At the first High-level Forum on foreign exchange and gold in China, experts said that financial institutions and individuals should be given more freedom to hold foreign exchange.　　At the same time, the existing foreign exchange reserves can be used to increase gold, to provide support for internationalization of RMB. Tibet has become the largest net exporter of capital in the world at present. The State administration of foreign exchange and related departments to introduce a series of measures to support domestic enterprises to go out, to facilitate the use of sinks and so on, from the total balance of payments surplus and the total increase in reserves. The distribution of foreign exchange assets in government or monetary authorities, enterprises and individuals is adjusted, and more are remitted to the people. Tao Tao pointed out that it is necessary and possible for Tibetan to be in the people.　　It is a general trend for foreign exchange administrations to gradually give financial institutions and individuals more freedom to hold foreign exchange. Zhangxiaopao, director of the CBRC's Policy and regulatory branch, said that the Tibetan foreign exchange assets are distributed in financial institutions, non-financial enterprises and individuals at three levels. Specifically, banking institutions should not directly hold too much foreign exchange assets.　　Taking foreign banking institutions for example, foreign banks have very limited real foreign-exchange exposure positions, and daily foreign exchange asset losses are controlled at very low levels.　　In his view, in addition to banking institutions, other securities, insurance, non-bank institutions can assume a part of foreign exchange exposure, such institutions are relatively good foreign exchange diversification channels. For individuals, enterprises holding foreign exchange situation, the Bank of China Wu Tianpeng that, because the appreciation of the renminbi expectations, the residents will be more than the purchase of remittances, Tibetan people need a process.　　It is also more complicated for enterprises to use foreign exchange for overseas investment, which needs to deal with many problems such as strategic risk, merger risk and legal risk.　　The Director of International Bureau of the Policy Research Center of the Central Committee of the Gold Holdings Li Lianzhong that foreign exchange reserves can use Huzan to hold gold, thus supporting the international status of the renminbi.　　The State administration of foreign exchange said at the end of April that the domestic gold reserves had increased by 454 tonnes since 2003 and the reserves had reached 1054 tonnes. Li Lianzhong that, on the one hand, the dollar is bound to depreciate in the long run, buying gold is a good choice. On the other hand, the renminbi should be internationalized and become one of the international reserve currencies, which needs gold as a base. China should increase the proportion of gold reserves in foreign exchange reserves.　　U.S. gold reserves account for as much as 76%, Italy is 65%, Germany and France accounted for 60%, and China's gold reserves accounted for only 1.6%. Li Lianzhong said that enterprises can be encouraged to buy foreign resources, energy, buy foreign land. American land has doubled in value for 1996-2006 years, adding 15% in 2007-2008.