Home / Business / Finance

China's forex reserve decline normal: Central bank governor

Xinhua | Updated: 2017-03-10 14:53

BEIJING — The dropping trend in China's foreign exchange reserve is a normal phenomenon, the country's central bank chief said Friday.

"China does not want that much forex reserve," Zhou Xiaochuan, governor of the People's Bank of China (PBOC), said at a press conference on the sidelines of the annual parliamentary session.

He said the forex reserve had seen fast expansion since 2002, which China deems to be unnecessary.

In the meantime, China sees no need in its policymaking to overreact to the large stockpile, Zhou said.

Since the global financial crisis, capital flow from developed countries implementing monetary easing policies to emerging markets had surged significantly, Zhou said.

The capital influx lacks stability and may flow back with the recovery of those developed economies, he added.

China still holds the largest forex reserve stockpile in the world, much higher than the runner-up, the governor said.

China's outstanding forex reserve stood at a little more than $3 trillion by the end of last month, down from near $4 trillion in 2014, PBOC data showed.

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349