Others News
- Nation doesn't plan big dollar reserve cuts
Date: 27-Jun-2007 Sources: (Shenzhen Daily)
CHINA has no plans to sharply reduce U.S. dollar assets in its US$1.2 trillion foreign currency reserves, a senior central bank official was quoted as saying after the government cut its stock of U.S. government debt in April for the first time in 18 months.
'It's highly unlikely that there is going to be a serious reduction in China of its dollar reserves,'Yi Gang, an assistant governor at the People's Bank of China, told reporters Monday.
'Our investment is in dollars so we need the reserves,'he said on the sidelines of the World Economic Forum in Singapore.
The U.S. Treasury Department's international capital data for April, released earlier in June, showed China's holdings of U.S. government debt fell by US$5.8 billion to US$414.00 billion, reflecting a net selling position for the first time since October 2005.
Any adjustments to China's dollar holdings would be 'incremental,'Yi said.
'Safety, return and liquidity are the three most important elements that people should consider when they talk about reserves,'Yi said.
Sponsor Results:
