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China is unlikely to see a balance of payments (BOP) crisis in a short period of time, the balance of payments statement released by the State Administration of Foreign Exchange (SAFE) said Sunday.
China's foreign exchange reserves reached US$711 billion by the end of June, 14.3 times as much as the monthly import volume, the SAFE said.
Meanwhile, the ratio of foreign exchange reserves to short-term external debt stood 503.2 percent, far higher than the internationally accepted alarm level of 100 percent, it said.
The debt service ratio was 2.1 percent, much lower than the internationally accepted alarm level of 15 percent, it said.
However, the quick growth of trade surplus, short-term external debt and foreign exchange reserves are the key problems that may trouble China, the SAFE said.
(Xinhua News Agency November 28, 2005)
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