China's Forex Reserves at "Sufficient Level": Yi Gang03-26 15:05 Caijing
China's foreign exchange reserves are probably already at a "sufficient level", vice central bank governor Yi Gang told an economic forum in south China's Guangzhou on Sunday.
China's foreign exchange reserves stood at 3.18 trillion U.S. dollars ending December 2011, compared with 3.2 trillion in the third quarter, data published on the central bank's official website showed earlier this year.
For foreign exchange reserves, it is not the more the better, said Yi Gang, who also heads China's State Administration for Foreign Exchange. China must weigh the marginal costs and benefits of acquiring additional reserves, he added.
When asked about by an audience when the stockpile of foreign exchange reserves would start benefiting the general public, Yi said they would once they were willing to hold foreign currencies, which would not happen until Chinese currency, the yuan, reaches an equilibrium level and could float freely in two directions.
China is currently in the process of liberalizing the yuan so it can be set
by the market "in a flexible manner," which would put the yuan on a path to
becoming a global currency.
Editors’ Picks »
- 1China's Provincial -level "Bad Banks" Start Working: Newspaper
- 2Central Bank Allows Direct Investment Overseas in FTZ
- 3Ten-Year-Old Chinese Girl Abuses Baby, Shocks Nation
- 4China Clarifies Details for the Coming Fiscal and Tax Reforms
- 5IPOs to Resume After a Yearlong Freeze
- 6Huawei is Giving up on the U.S., Finally
- 7China Housing Prices Post 18th Monthly Rise in Nov.
- 8Cities and Sustainable Development
- 9Alipay in Push to Lure Mobile Users
- 10China Everbright Secures $1.4Bn Subscription from Cornerstone Investors