China's foreign exchange reserves at a record $2.5 trillion
11 Oct 2010
Even as it goes around in international fora protesting international pressure to correctly value its national currency, China's foreign-exchange reserves, already the world's largest, may now have climbed to a record $2.5 trillion. The news may likely result in further pressure being brought to bear on China, the world's most brazen currency manipulator, to stop intervening in the currency markets to artificially deflate the value of the yuan.
According to a Bloomberg News survey of eight economists Chinese foreign exchange reserves may have risen about $48 billion in the third quarter, which compares to a $7 billion gain in the previous three months. The last quarter's increase was the smallest in 11 years.
It is likely that the Chinese central bank may release the figures his week.
Market experts surmise that this massive build-up of foreign-exchange assets is expected to add greater urgency to appeals by China critics who have been urging for a rapid appreciation of the yuan.
China replaced Japan in the second quarter as the world's second-largest economy.
China's currency reserves crossed the $2 trillion mark in the first half of last year.