Economists have prompted China to diversify part of its forex reserves to avoid losses which are linked to a devaluation of U.S backed assets.
The suggested change was a move to diversify parts of its large reserves into gold and oil.
Using some of the forex reserves to buy gold could "maintain and raise the value of China's dollar holdings," Zhao Qingming from the central bank's Financial Research Institute and Luo Bin from its accounting department wrote in a note published in China Money Market this month.
It is not clear of any possible policy changes by China's Central Bank.
China's forex reserves are the largest in the world. At the end of the first quarter of 2006, it reached $875 billion which surpassed Japan.
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