Last updated at: (Beijing Time) Tuesday, December 17, 2002
China's Forex Reserve Far from Surplus
Qiu Xiaohua, deputy director of the National Bureau of Statistics, noted when attending China Economic Growth Forum 2002 held in Suzhou, that China does not overstock its foreign exchange, which, instead, will maintain a steady growth in coming years.
Qiu Xiaohua, deputy director of the National Bureau of Statistics, noted when attending China Economic Growth Forum 2002 held in Suzhou, that China does not overstock its foreign exchange, which, instead, will maintain a steady growth in coming years.
As learned, China's Forex reserve has in recent years grown steadily, surpassing US$ 270bn. As a considerable part yields a modest profit such as treasury bonds of other countries, China's costs on Forex reserve and other negative effects has roused the attention of scholars at home and abroad, some even pointing out that there sees surplus of Forex reserve in China. Thus, Mr. Qiao Xiaohua said, "The more Forex reserves, China has the better." Compared with the US$ 400bn in Japan, how could China's Forex reserve of less than US$ 300bn be a surplus?
In addition, Mr. Qiao Xiaohua expounded on the strategic significance of China Forex reserve in three aspects. First, the Forex reserve provides a solid foundation to withstand international risks. But for it, China would have to face more difficulties in coping with international challenges. Secondly, the Forex reserve serves as a drive for a further development in economy, in promoting structural adjustment, advancing the opening-up and uplifting technological level. Lastly, the Forex reserve is essential for Renminbi to become fully convertible. Without sufficient Forex reserve, there is no way for Renminbi to integrate into the world.
Therefore, it is necessary to look at the issue of China's Forex reserve from different angles, from a great pattern of China's international status and the national development at present and in future.