“There’s no reason why the Chinese central bank should hold a disproportionate amount of other countries’ reserve currencies such as the dollar,” David Marsh, chairman of the Official Monetary and Financial Institutions Forum, said today in an interview in Beijing. “It is likely that the Chinese authorities will carry on purchasing gold in modest amounts and they will do it in a way calculated not to disturb the market.”
Gold climbed to a record $1,921.15 an ounce on Sept. 6, 2011 and traded little changed at $1,674.45 an ounce at 8:29 a.m. Beijing time.
“As China aspires to take the lead politically and economically, it is unlikely to be satisfied with storing its wealth simply in liabilities of other countries,” Marsh wrote in a report commissioned by the World Gold Council and published today.
“By the year 2020, the renminbi will be the third-biggest, or one of the three biggest, reserve currencies in the world,” Marsh said in the interview.