CHINA WANTS ITS FOREIGN RESERVES DE-LINKED FROM US $.

CHINA WANTS TO DE-LINK ITS FOREIGN RESERVES FROM DOLLAR.

China's holding of US assets is currently at 64%. It has

gradually declined from 84% as it existed in the year 2003. China has negotiated to invest $ 140

billion  in IMF SDR (Special Drawing Rights) bonds.

China plowed its currency reserves into gold-stock. It has increased its gold

holding to 1054 tonne this year, through domestic purchases and refining scrap gold.

It wants to hold 10% gold stock as collateral to its floating currency. It is a fact that china is consolidating itself. China issued its own currency bonds in place of US $, indicates its

stand with regard to US $.

 India purchased 200 tons of IMF gold.

 India has presently 560 tonne, 3.6% of gold reserves with Reserve Bank.

Now it is 600 tons or 5.4 % of its gold reserves as against mandatory  gold reserve of 10%. Reserve Bank would require to stock 460 tonne of bullion gold to reach 10%  level. Purchase of old jewellery and scrap gold is thriving in India by private parties, and exported to Dubai. Therefore RBI needs to open counters in Banks, Post Office, to buy used gold from public.  There is stock of 15000 tons of gold in India in hands of private parties, individuals and institutions.     Around 500 tons of gold scrap entered the global market in the recent past. It finds its way to Dubai. Dubai purchases scrap gold, refines it and converts it into gold coins which sell like hot cakes through out the world.

It is high time now for India to avail of this scheme.