日批在线视频_内射毛片内射国产夫妻_亚洲三级小视频_在线观看亚洲大片短视频_女性向h片资源在线观看_亚洲最大网

National

Regional

Taiwan, HK, Macao

Special Coverage

Focus

Society

Profiles

Purchase of US Treasuries to continue

By Zhang Ran (China Daily)
Updated: 2009-03-24 07:30

The nation will continue buying US government debt but pay close attention to possible fluctuations in the value of the assets, a vice-governor of the central bank said yesterday.

Investing in US Treasury bills is "an important component of China's foreign currency reserve investments," People's Bank of China Vice-Governor Hu Xiaolian told a news conference about President Hu Jintao's participation in the G20 financial summit in Britain next week.

"We are naturally concerned about the safety and profitability of US government bonds," she added.

The nation's reserves hit a record $1.95 trillion at the end of 2008, the largest in the world and far exceeding those of Japan, the second-largest foreign exchange holder, which had $1.03 trillion.

Beijing is also Washington's biggest foreign creditor, holding an estimated $1 trillion in government debt.

Hu Xiaolian made the remarks in response to worries that rising debt to fund Washington's stimulus package could stoke inflation and weaken the dollar, which would erode the value of the assets.

Related readings:  Allure of US Treasuries set to fade  China still prefers Treasuries  Clinton urges China to continue buying US Treasuries  Should China continue to buy US treasuries?  China becomes biggest US treasuries holder

US central bankers decided last week to buy as much as $300 billion of long-term Treasuries and more than double mortgage-debt purchases to $1.45 trillion, aiming to lower home loan and other interest rates. With the purchases of Treasuries and housing debt, Fed chief Ben Bernanke is effectively using the Fed's powers to print money. Some analysts said that by doing so, he has signed the death warrant for the US dollar.

But Hu Xiaolian said that the credit risk in continuing to buy US Treasuries is low in overall terms.

Given that the US dollar is still the leading currency for international settlements, valuation and payment of trade, China will pay closer attention to the supervision of the international monetary system based on the US dollar, she said.

Her comments follow remarks earlier this month from Premier Wen Jiabao, who said he was "a little worried" about China's holdings of US government debt.

China's investments are likely to be a major topic of discussion when President Hu Jintao meets with his US counterpart Barack Obama on the sidelines of the summit in London.

The meeting will be the first face-to-face encounter between the two leaders.

   Previous page 1 2 Next Page  

   Previous page 1 2 Next Page