Home>News Center>China
       
 

SAFE: Country not reducing US dollar holdings
By Zhang Dingmin (China Daily)
Updated: 2004-12-10 00:37

China refuted rumours on Friday that it had been dumping US dollar-denominated assets from its massive foreign exchange reserves.

The rebuttal by the nation's forex regulator was a direct response to recent reports in overseas media that the nation was reducing US dollar holdings due to the greenback's persistent slide.

"Those reports were sheerly groundless," said a spokesman for the State Administration of Foreign Exchange (SAFE).

"China is a highly responsible investor in the international market," he continued. "China has always been protective of the security and stability of the international market on a voluntary basis, and will never participate in exchange rate speculative trading."

The currency allocation of China's forex reserves is based on factors such as the needs of its economic growth, foreign trade payments, foreign debt structure as well as capital market conditions.

"We pay a lot of attention to the tendencies of the international foreign exchange market, but will not adjust our currency mix to follow short-term market fluctuations," the spokesman said.

The US dollar slide substantially against major currencies in recent months. It has depreciated 30-40 per cent against the euro and 10-20 per cent against the Japanese yen since 2002.

The dollar's depreciation has also prompted worries that it had subsequently resulted in huge losses to China's forex reserves, which SAFE also dismissed.

China's forex reserves jumped by 27 per cent in the first three quarters of this year to US$514.5 billion. Sixty to seventy per cent of the money is commonly estimated to be held in US dollar-denominated assets.

China has developed a relatively mature mechanism to manage its forex reserves under the principles of "safety, liquidity and appreciation," and exchange rate changes will not result in any real gains or losses until currency conversion occurs, the SAFE spokesman said.

The Chinese Government has fully considered its external payment needs when deciding the currency mix of its forex reserves, he said. "So there is not such a possibility that China converts US dollars into other currencies due to a lack of real payment methods, and therefore incur conversion losses."

In sharp contrast to the 1980s and early 1990s when China's foreign exchange incomes were tightly controlled as a rare resource, the rapid increase in forex reserves in recent years have led to growing speculation among some economists over the need to keep such a large pool of foreign exchange.

But the SAFE spokesman refuted that point of view on Friday, saying the ultimate goal of holding forex reserves is to safeguard a nation's macroeconomic stability, maintain the credibility of the government and its enterprises, as well as boost international confidence in the Chinese economy and currency.

"There is certain cost to holding forex reserves," he said. "But in the event of turmoil or crisis in the economy or entire financial system, the nation will suffer costs that are tens or hundreds of times as much."



 
  Today's Top News     Top China News
 

China concerns Japan's overhaul of defense policy

 

   
 

Loosen gov't control of economy

 

   
 

SAFE: Country not reducing US dollar holdings

 

   
 

China fills top sports post for Olympics

 

   
 

Coal mine blast kills 33 in Shanxi

 

   
 

Watchdog: CAO made 'wrong' decisions

 

   
  Loosen gov't control of economy
   
  China fills top sports post for Olympics
   
  China executes 3 baby traffickers
   
  Ships gather to clean up oil spill
   
  Funds earmarked to bring rural children access to information
   
  Coal mine blast kills 33 in Shanxi
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  Related Stories  
   
China further loosens forex control
   
Relaxing forex control a must
   
Speculative money: A hot potato for China
   
Forex reform will go steadily
   
US calm despite dollar's woes
   
World experts okay paced forex reform
   
Fujian forex crackdown applauded
  News Talk  
  It is time to prepare for Beijing - 2008  
Advertisement
         
主站蜘蛛池模板: 第四色婷婷基地| 亚洲视频一区二区三区四区| 护士又湿又紧我要进去了| 亚洲av永久无码精品天堂久久 | 女大学生的沙龙| 丰满少妇作爱视频免费观看| 最新版天堂中文在线| 亚洲欧洲日本国产| 狠狠精品干练久久久无码中文字幕 | 你是我的城池营垒免费观看完整版| 老师你的兔子好软水好多的车视频| 国产对白真实伦视频在线| 亚洲欧美校园春色| 国产精彩视频在线观看| JAPANESE国产在线观看播放| 巨大欧美黑人xxxxbbbb| 中文字幕看片在线a免费| 日本理论片午午伦夜理片2021| 五月激情综合网| 欧美亚洲一区二区三区| 亚洲日韩精品无码一区二区三区| 波多野たの结衣老人绝伦| 人妻无码一区二区三区四区| 精品久久久久久无码免费| 四虎影永久在线观看网址| 色综合a怡红院怡红院首页| 国产免费女女脚奴视频网| 香蕉大战欧美在线看黑人| 国产成人免费电影| 97国产在线播放| 国产成人精品永久免费视频| 黄色片在线播放| 国产欧美在线播放| 日本xxxxbbbb| 国产福利在线小视频| 中文字幕中出在线| 国产真实乱xxxav| 欧美日韩第一页| 国产无遮挡又黄又爽网站| 久久久久久久性| 国产成人久久av免费|