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Official: No need to adjust China's forex structure

By Li Weitao (chinadaily.com.cn)
Updated: 2009-03-07 11:15

China has no need to adjust the structure of its huge foreign exchange reserve, a top lawmaker said at the ongoing session of the National People's Congress (NPC).

The structure of China's forex reserve remains sound, Wu Xiaoling, deputy head of the financial and economic committee of the NPC and the vice-governor of the central bank, was quoted by China Securities Journal as saying.

Wu opposes the proposal that China use its colossal foreign exchange reserve to help State-owned companies acquire overseas mineral resources. The government and companies should raise yuan funds and buy foreign exchanges in a bid to finance overseas acquisition instead of using the country's foreign exchange reserve, Wu said.

China had $1.95 trillion in foreign exchange reserves by the end of last year, the world's largest. Calls have been growing for the government to use its forex reserve to set up a fund to finance the overseas acquisitions of mineral resources to sustain its economic growth.
 
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