China should increase the amount of gold it holds in reserves to reduce potential losses from a depreciating dollar, the China Youth Daily said today, citing Ji Xiaonan, chairman of the supervisory committee overseeing large state-owned enterprises under the State Council.

"We recommend China increase its gold reserves to 6,000 metric tons within three-to-five years and possibly to 10,000 tons in eight to 10 years," the paper quoted Ji as saying.

Some of China's foreign exchange reserves should be swapped into gold, which would lessen losses from a depreciating U.S. dollar, the paper said, citing Ji.