China became the world’s fifth-largest by gold holdings

As the official Xinhua News Agency announced, quoting Hu Xiaolian, since 2003 China boosted its gold reserves by 76%, thus becoming the world’s fifth-biggest holding. Boosted by domestic purchases and refining scrap metal China’s reserves grew by 454 tons to 1,054 tons.

As of March 31China has the world’s largest foreign exchange reserves at $1.95 trillion, according to the administration. Over the past six years the China’s holdings have climbed about six times as the country had record trade surpluses and inflows of foreign investment. Gold prices have almost tripled to more than $900 an ounce from $337.

China is the biggest foreign owner of U.S. government debt, holding bonds totaling $744 billion at the end of February, according to U.S. data. And dollar’s wakening would lead to eroding of value of China’s Treasuries holdings, considers Chinese Premier Wen Jiabao.