China's forex reserves hit $1.76 trillion
Tuesday, 3 June 2008
SHANGHAI, June 2 (AFP): China's foreign exchange reserves rose to US$ 1.76 trillion at the end of April, state media reported Monday, reaching a level higher than the rest of Northeast Asia's combined.
China's reserves, by far the largest in the world, expanded by another $74.5 billion during April, the China Business News reported, equivalent to about $100 million every hour.
At $1.76 trillion, China's reserves are now larger than those of Japan, Taiwan, South Korea and Hong Kong combined.
The growth in reserves came amid rising official concern about a fresh surge in hot money -- or speculative inflows -- spurred by a strengthening yuan and a widening spread between falling US interest rates and rising Chinese rates.
The increase in reserves was roughly three times larger than the trade surplus and the value of incoming foreign direct investment -- the two traditional sources of reserve growth.
China's reserves, by far the largest in the world, expanded by another $74.5 billion during April, the China Business News reported, equivalent to about $100 million every hour.
At $1.76 trillion, China's reserves are now larger than those of Japan, Taiwan, South Korea and Hong Kong combined.
The growth in reserves came amid rising official concern about a fresh surge in hot money -- or speculative inflows -- spurred by a strengthening yuan and a widening spread between falling US interest rates and rising Chinese rates.
The increase in reserves was roughly three times larger than the trade surplus and the value of incoming foreign direct investment -- the two traditional sources of reserve growth.