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China should buy gold to hedge dlr fall-researcher

Published 06/24/2009, 10:15 PM
Updated 06/24/2009, 10:24 PM

BEIJING, June 25 (Reuters) - China should buy more gold because the dollar is poised for a fall and the metal is needed to support the greater international role envisaged for the yuan, a researcher with the ruling Communist Party said on Thursday.

Li Lianzhong, who heads the economic department of the Party's policy research office, said China should use more of its $1.95 trillion in foreign exchange reserves to buy energy and natural resources.

Speaking at a foreign exchange and gold forum, Li also said that buying land in the United States was a better option for China than buying U.S. Treasury securities. (Reporting by Zhou Xin and Alan Wheatley; Editing by Ken Wills)

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