China Currency Reserves Rise to Record $1.9 Trillion (Videos Added)
China’s foreign-exchange reserves rose to a world record $1.906 trillion, helping to strengthen the nation’s finances as the credit crisis threatens to trigger a global economic slump.
Currency holdings rose 32.9 percent at the end of September from a year earlier, the People’s Bank of China said on its Web site today. The increase of about $97 billion over the quarter was down from a $126.6 billion gain in the previous three months.
China has cut interest rates twice in the past month to stimulate growth as the worst financial crisis since the Great Depression dims the outlook for exports. The world’s fourth- biggest economy can still expand 10 percent this year and 9 percent in 2009, central bank Deputy Governor Yi Gang said Oct. 11 in Washington.