Foreign Exchange News
- Forex agency may be ready by year-end
Date: 8-May-2007 Sources: (Shenzhen Daily)
WEI BENHUA, deputy head of China's currency regulator, said Sunday the country's new foreign exchange reserve investment agency could start operations by the end of this year.
He said domestic media had reported that such an agency could manage a maximum of US$200 billion of the country's US$1.2 trillion in reserves, adding this did not reflect his own judgement on how much the agency would handle.
'I'm sure it should be ready by the end of the year,'Wei said at the annual meeting of the Asian Development Bank in Kyoto, western Japan.
He said one of the options to fund the new agency was to issue yuan-denominated bonds to buy foreign exchange reserves from the central bank.
The government began setting up the agency earlier this year to help manage part of the country's vast reserves.
Wei said that his office would improve the approach and method of capital management and strictly control the inflow of speculative short-term capital.
Turning to global central bank reserves management, Wei said many central banks have been shifting more of their reserves to a wider range of asset classes, which also exposes them to challenges from both the changing economic climate and ongoing transformation in their management practices.
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