Banking News
- Central bank: China a responsible investor in int'l financial market
Date: 13-Aug-2007 Sources: (Xinhua Online)
BEIJING, Aug. 12 (Xinhua) -- In response to a media report saying that 'China threatens to trigger U.S. dollar crash', the country's central bank said here Sunday that China is a responsible investor in the international financial market.
On Aug. 8, a U.K. media reported that two senior Chinese officials warned in an interview that Beijing may use its 1.33 trillion of foreign reserves as a bargaining chip in talks with the U.S. on issues such as yuan revaluation.
China's forex management eyes on safety, liquidity and rate of return and adheres to a long-term and strategic policies, the People's Bank of China (PBOC) said in a statement.
In determining the structure of its monetary assets, Beijing chiefly considers the country's foreign trade, evolution of the international monetary system, trends in the international capital and forex market, said the PBOC.
U.S. dollar assets, including U.S. treasury bonds, are important component of China's forex reserves investment as the dollar plays an important role in the international monetary system while the U.S. financial market has huge capacity and high liquidity, said the PBOC.
China and the U.S. has close economic relationship, which has great impact not only on the steady economic development of the two countries, but also on the stable development of the world economy, it said.
China always attaches great importance to the harmonious development of Sino-U.S. trade and to strengthening communications and exchanges through normal channels such as the Sino-U.S. strategic economic dialogue, according to the PBOC.
Such communications and exchanges would help promote mutual understanding and cooperation on the basis of consensus and would contribute to economic prosperity in both countries for the benefits of the two peoples, the statement said.
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