|
Forex reserves far too big: economist
(Reuters)
Updated: 2006-03-03 14:38 China has three times more
foreign exchange reserves than it needs and should cut them accordingly, the
official Securities Times quoted an influential Chinese economics proForex
reserves far too big: economistfessor as saying on Friday.
"China's
foreign exchange reserves hit $818.9 billion at the end of last year, but they
should not exceed $250 billion," Peking University professor Xiao Zhuoji told
the paper in an interview.
The government should also ease its control on foreign exchange and make
better use of the reserves, which are predominantly invested in short-term U.S.
treasury bills with low returns, Xiao added.
"That's like allowing foreign countries using our money cheaply," he said.
In similar remarks published by state media last week, Xiao proposed to
reduce the dollar share of the reserves to curb risks posed by the instability
of the U.S. currency.
He also urged Beijing to cut its trade surplus, which tripled last year to
$102 billion, by reducing resource-intensive exports and importing more
high-tech products.
Xiao is also a member of the standing committee of the Chinese People's
Political Consultative Conference, a body that advises the National People's
Congress, or parliament.
The conference opens its annual session on March 5 in
Beijing.
|
