Business » Finance
Author`s name Dmitry Sudakov

China saves up 30,000 tons of gold to topple US dollar from global reign

 

China is waiting for the right moment to remove the US dollar from economic reign. Once the US dollar loses its leadership, China plans to make the yuan world's first currency. 

According to Duowei News, to ensure its domination, China is saving up gold. According to unconfirmed reports, China already has about 30,000 tons of the precious metal. If this is true, it means that China will be capable of brining the US dollar down in an instant. 

Also read: China becomes world's largest producer of gold

Economic analyst Jing Zhou believes that in order to challenge such a powerful economy as that of the United States, one will need a very large amount of gold.

In addition, the Chinese authorities expect that the Chinese national currency will be added on the list of IMF reserve currencies that already includes the dollar, the euro, the pound sterling and the Japanese yen.

Thus, Beijing is getting ready to topple the US dollar by increasing its gold reserves. Noteworthy, Russia also sticks to a similar tactic: since 2005, the country has doubled its gold reserves. As of late 2014, Russia was ranked fifth in the world in terms of gold reserves

"If China does have 30,000 tons of gold, then the yuan will have a very strong shield to protect itself. Even if it is not true, it is clear that China collects gold very actively. In addition, China's position in global financial markets has increased considerably," Duowei News said. 

Also read: The Fed, the dollar, gold and the petrodollar

Analysts from the Organization for Economic Cooperation and Development believe that the Chinese economy will rank first in the world by 2016б while its national currency will obtain the status of the main global reserve currency.

However, information about 30,000 tons of Chinese gold has not received confirmation from official sources. Sudden and quick changes in world economy are very unlikely.  

Vice-president of the Golden Mint House, Alexey Vyazovsky, said in an interview with Pravda.Ru that China increases gold reserves without far-reaching plans just because gold is "eternally valuable." However, the expert did not exclude the appearance of the so-called golden yuan. 

Pravda.Ru 

Read article on the Russian page of Pravda.Ru

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