In response to a media report saying, "China threatens to
trigger a US dollar crash," the central bank said in Beijing on
Sunday that China is a responsible investor in the international
financial market.
On August 8, UK media published an interview with two senior
Chinese officials who allegedly warned that Beijing may use its
1.33 trillion of foreign reserves as a bargaining chip in talks
with the US on issues such as yuan revaluation.
China's forex management is focused on safety, liquidity, and
rate of return and adheres to a long-term strategic policy, the
People's Bank of China (PBOC) announced in a statement.
In determining the structure of its monetary assets, Beijing
chiefly considers foreign trade, evolution of the international
monetary system, trends in international capital, and the forex
market, said the PBOC.
US dollar assets, including US treasury bonds, are an important
component of China's forex reserves investment as the dollar plays
an important role in the international monetary system while the US
financial market has huge capacity and high liquidity, the PBOC
added.
China and the US have a close economic relationship, which has
great impact not only on the steady economic development of the two
countries, but also on the stable development of the world economy,
it said.
China always attaches great importance to the harmonious
development of Sino-US trade and to strengthening communications
and exchanges through channels such as the Sino-US strategic
economic dialogue, according to the PBOC.?
Such communications and exchanges would help promote mutual
understanding and cooperation on the basis of consensus and would
contribute to economic prosperity in both countries for the
benefits of the two peoples, the statement said.
(Xinhua News Agency August 13, 2007)
