Adviser says China should buy gold with reserves

China should use its foreign-currency reserves to buy gold and oil as a hedge to guard against the risk of a sudden drop in the U.S. dollar, according to a member of the central bank's advisory board.

``China has more than enough foreign-exchange reserves,'' said Yu Yongding, who advises on policy as a committee member of the People's Bank of China. ``While they cannot be reduced sharply all at once, China has decided to take measures to curb their growth rate and diversify investment of its

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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