NC:Soaring Gold Price Raises Taiwan`s Reserves to US$21.86B.
Taipei, July 25, 2011 (CENS)--The European debt crisis plus depreciating greenback have recently pushed gold price to US$1,600 per ounce globally, hence raising the value of gold reserves held by Taiwan`s central bank to NT$632.2 billion or US$21.86 billion, accounting for 5.46% of the foreign exchange reserves.
The central bank holds 423 tons or 13.62 million ounces of gold, whose price at the end of March lingered at US$1,400 per ounce to result in the gold reserves accounting for 5% of the forex reserves.
An official at the central bank says Taiwan`s gold-to-forex-reserve ratio is about 5%, which seems quite low compared to other countries as the United State and Germany, whose ratios total 60%-70%, which are relatively high due to their holdings of lower forex reserves.
