China aims to spend $200bn of reserves - Zhou Jiangong

From Asia Times:

The Chinese government is taking action to implement a new policy of diversifying the disposal of the country’s over US$1 trillion foreign exchange reserves which was initiated by the Central Conference on Financial Affairs three weeks ago.

The Ministry of Finance (MOF) is planning to issue yuan-denominated bonds to raise funds that will be used to “buy out” as much as $200 billion from the country’s foreign reserve pool. To take funds out of the foreign exchange reserves the government must pay the equivalent amount in yuan to balance the books. [Full Text]

February 3, 2007, 10:41 PM
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Categories: China & the World