Monday, April 13, 2009

China's foreign exchange reserves 1.95 Trillion U.S. Dollar

central bank of china

Central Bank of China in Beijing, Saturday (11 / 4) announced the foreign exchange reserves rose 16 percent at the end of March 2009 compared with 2008. Current foreign exchange reserve reached 1.95 trillion U.S. dollars. Indonesia foreign exchange reserves per March 2009 only 54.8 billion U.S. dollars.

China's foreign exchange reserve is the largest in the world, up 7.7 billion U.S. dollars in the first quarter 2009. Years ago, in the first quarter, China's foreign exchange reserves rose to 146.2 billion U.S. dollars. The increase in the first quarter was also much less than the increase in the fourth quarter of 2008 reached 45 billion U.S. dollars, as info by China press-agency. Increase less than the previous achievement was due to the decrease in imports. This is in line with the decrease in world demand of goods made in China because of global crisis.

The analysts believe China will still hold 70 percent of foreign exchange reserve assets in U.S. dollar denomination, including U.S. Government securities.

Foreign exchange reserves also increased because the Central Bank of China continues to buy U.S. dollars from the market as swift of flow incoming foreign investment. Despite China's economic decline in the trade sector and domestic properties, the data show a decrease in the last one the wane. The Government is taking steps to prevent further decline in exports, such as the reduction of export taxes and prevent the yuan exchange rate.

The economist said, the steps that can be tense relationship with China's trading partners if China trade not reasonable. UK PM Gordon Brown had to request pour bailout funds from China's reserves.