China’s Reserves Up
China’s foreign currency reserves have risen to $818.9 billion, up 34% from a year earlier, state media reported today. At this growth rate, its reserves could reach $1 trillion this year, surpassing Japan’s as the world’s biggest.
The nation’s central bank said reserves rose by $208.9 billion from 2004. Analysts estimate that three-fourths of China’s reserves are held in U.S. Treasury bonds.
The government’s foreign currency regulator said this month that its plans for 2006 include “actively exploring more efficient use of our [foreign-exchange] reserve assets.”
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