China's forex reserves weather impact of financial crisis

Forex authorities will work to optimize trade and investment, while strengthening control of risk arising from inflows of hot money. Deputy Governor of the Central Bank and also head of the Foreign Exchange regulator, Yi Gang, also clarified China's position on forex management and reserves.

Yi Gang said foreign exchange authorities will make it easier for companies to trade, by further simplifying procedures. Meanwhile, it will also keep a close eye on capital inflows to ensure financial security.

Yi Gang said China had managed to keep most of its investments of forex reserves intact, despite the global financial crisis.

Yi Gang, deputy governor of People's Bank of China, said, "China's foreign exchange reserves have weathered the impact of the international financial crisis and maintained overall value of assets. In 2008 and 2009 when the crisis was at its worst, China's foreign exchange reserves not only kept their original capital base, but also yielded relatively good returns."

Aslo at press conference on China's forex reserves:

China's forex regulator vows to stem hot money inflow

China's foreign exchange regulator said on Tuesday joint efforts should be made to fundamentally stem hot money inflow. Full Story>>

China reaffirms to keep yuan basically stable: official

China will keep the exchange rate of the Renminbi, or the country's currency yuan, basically stable at a reasonable and balanced level, a central bank vice governor reaffirmed Tuesday. Full Story>>

China says to let market decide future of yuan settlement

China will let the market decide the future of yuan settlement in cross-border trade as it further removes obstacles at the administration level, a central bank vice governor said Tuesday. Full Story>>

China reiterates to steadily advance yuan convertibility under capital accounts

China will stick to the "established policy" of "steadily advancing the convertibility of yuan under capital accounts" despite the rising global argumentation for the rationality of curbing capital accounts amid financial crisis, an official said here Tuesday. Full Story>>

China says to consider more foreign reserves investment in gold "cautiously"

China said Tuesday it will consider investing more foreign exchange reserves in gold "cautiously" based on market conditions, noting at the same time gold is unlikely to be a major channel of investment. Full Story>>