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Central bank: Dollar assets key part of China's reserves

(Reuters)
Updated: 2007-08-12 14:01

He said China had always taken a long-term, strategic view in its reserves management that took account of the changing trends in the global capital and foreign exchange markets.

"The close economic and trade relations between China and the United States play an important role in the stable development of the two countries' economies and the world economy as well," the official told Xinhua.

The Daily Telegraph said recent remarks by Xia Bin and He Fan, two senior economists at Chinese government-backed think tanks, were the first time Beijing had warned that it might use its foreign reserves as a political weapon.

Analysts and traders in China played down the two economists' remarks. They did not believe the comments indicated any change in Beijing's official policy and said their remarks in any case were not new.

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Central bank: Dollar assets key part of China's reserves