SHANGHAI (XFN-ASIA) - Two central bank officials suggested China can convert part of its foreign exchange reserves to gold holdings to head off risks from the depreciation of the US dollar, state media reported.

Converting part of foreign exchange reserves to gold can protect and increase the reserve assets, the official Shanghai Securities News reported,
citing an article written by Zhao Qinming, an official at the central bank's financial research institution and Luo Bin of its accounting department.

The article was published on the latest edition of China Money - a monthly magazine controlled by the People's Bank of China, the central bank, the paper said.

(1 usd = 8.00 yuan)