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Finance: Forex reserves in spotlight
Updated: 2006-03-28 14:57
China has overtaken Japan to become the world's biggest holder of foreign
exchange reserves after its stockpile grew US$8.5 billion in February to
US$853.7 billion, the China Business News reported on Tuesday. Japan had
reserves at the end of February of US$850.1 billion. Growth in China's reserves
last month slowed from US$26.3 billion in January, the Shanghai newspaper said.
(CE.cn)
The country should use part of its fast-growing foreign exchange reserves to
buy gold as it seeks to adjust the asset mix to hedge against risk, a Bank of
China official was quoted as saying yesterday. Analysts say China has been
gradually diversifying away from the U.S. dollar, although fears of a collapse
in the U.S. currency will prevent any dramatic shift. Government officials have
denied reports they plan to sell current dollar assets in the
reserves.(SD-Agencies)
"Absorb foreign capital," "open domestic market to the outside world," such
phases marking that China opens its door on its own initiative and welcomes
foreign capital have pushed many Chinese senior officials in a dilemma. As a
large number of spheres including steel, energy, communication, finance and
transportation have been open to the outside world, foreign capital, which has
eyed the Chinese market greedily for a long time, rushes to China by way of
becoming a shareholder or controlling shareholder and acquiring Chinese
enterprises. This may bring along many problems to China's future economic
development. (Chinanews.cn)
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