From Bloomberg:

China’s foreign-exchange reserves, the world’s largest, climbed to a record $1.33 trillion at the end of June, increasing pressure on the government to allow faster yuan gains.

“China’s foreign reserves are too big and mopping up the liquidity that fuels inflation and asset bubbles is an administrative headache,” said Simon Derrick, chief currency strategist at Bank of New York in London. “Allowing the yuan to rise at a faster pace is what they should do.” [Full Text]

See also the Forbes report on China’s economic growth.