China should boost gold reserves to 5 pct, says World Gold Council

26-Mar (Reuters) – China should increase its gold holdings to around 5 percent of its total foreign exchange reserves to help diversify currency risks, the World Gold Council (WGC) said.

China currently holds about 1.6 percent of its foreign exchange reserves in gold, which is relatively low compared with developed countries and some developing countries, WGC China managing director Roland Wang said.

“The ideal amount should be at least 5 percent of its total forex reserves,” Wang told Reuters in an interview in Hong Kong.

…Increased gold holdings could boost investor confidence at a time when China is pushing the internationalization of the yuan, he added.

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