Gold in China's foreign exchange reserves is only 1.5%

Huang Zemin, a member of the CPPCC, said yesterday that the country holds an international reserve that is not as good as the gaochenwu of international reserves.　　China's foreign exchange reserves of gold accounted for only 1.5%, should greatly increase the proportion of gold. Huang Zemin that the purpose of a country's international reserves is to prevent the balance of payments deficit and the inadequacy of external means of settlement. Specifically, in order to meet the demand of import and the demand of monetary external liabilities, there is also a need to stabilize the exchange rate for non-international currency countries. However, the holding of international reserves has the opportunity cost, there are some risks. Opportunity cost refers to the loss of economic development and current consumption as a result of holding reserves, and the risk refers to the depreciation of international reserves and the loss of principal. He pointed out that the international reserve is only a country's external economy for the means of payment, rather than wealth.　　The international reserve as the idea of wealth to guide the overall size of a country's international reserves, the direct result is that the total size of the reserve is growing, the end result is the domestic employment and demand, reserve assets suffered devaluation risk, and even the principal suffered losses. Huang Zemin in particular, the current developed countries in the reserves of gold in most of the proportion of more than 30%, and the current China's foreign exchange reserves in the proportion of gold is far from this ratio, gold accounted for only 1.5% of foreign exchange reserves, should greatly increase the proportion of gold. Gold prices continued to rise rapidly into this century, rising from more than $200 trillion in 1 ounces of gold to more than 1400 dollars. Unfortunately, in the past 5 years, China's foreign exchange reserves increased rapidly, in addition to the April 2009 increase in gold reserves, no more overweight gold.