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Forex Reserves Hit US$925 Bln
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China's foreign exchange reserves hit US$925 billion by the end of May this year, a growth of 33.9 percent over the same period of 2005.

 

In May alone, the country's foreign exchange reserves rose by US$30 billion, the highest monthly increase this year, the Financial News reported on Wednesday.

 

Meanwhile, China's trade surplus averaged US$13 billion and direct foreign funds flowing into China totaled US$23 billion dollars in the first five months.

 

These two factors contributed to the rapid growth of foreign exchange reserves, said Zhao Xijun, deputy director of the Finance Research Institute of the Beijing-based People's University.

 

A report by the Macro Economic Research Institute with the National Development and Reform Commission urged the Chinese central government to step up macro economic controls and rein in the fast growth in investment.

 

The report suggested the government increase interest rates at an "appropriate time" if the overheated investment trend could not be curbed.

 

China's foreign exchange reserves overtook Japan to become the world's largest in February.

 

(Xinhua News Agency July 7, 2006)

 

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