China forex reserves hit $954.5 billion
Updated: 2006-09-05 14:26
China's forex reserves rose further to hit US$954.5 billion at end-July but
they must not be allowed to grow much more because of the upward pressure they
put on the yuan, Vice President Zeng Qinghong said in an article.
The latest figure translates into 30.3 percent growth from US$732.7
billion at the end of July 2005 and places China well on track to hold an
unprecedented one trillion dollars in forex reserves by the end of the year.
China's foreign reserve holdings, already the biggest in the world, hit
US$941.1 billion at the end of June, a 32.4 percent increase from a year earlier,
the central bank reported in July.
Zeng, writing in an article published on the website of the official Study
Times, said China will take measures to ensure that there is no further
significant rise in the reserves.
"The foreign exchange reserves have reflected China's growing economic power
but on the other hand they have increased exchange rate risks and added upward
pressure on the yuan," he said in the article.
"We will take comprehensive measures to avoid further significant growth in
the foreign exchange reserves," he added.