皇冠体育app

Economy

皇冠体育app's FX reserves not 'atomic weapon': SAFE

(Xinhua)
Updated: 2010-07-07 17:36

BEIJING - 皇冠体育app's State Administration of Foreign Exchange (SAFE) Wednesday rejected concerns that it would use 皇冠体育app's foreign exchange investments as an "atomic weapon" against investment targets.

The country's foreign exchange regulator posted a question-and-answer statement on its website, saying investments would be assessed according to their performance, and that "We are not seeking to control investment targets"s via foreign exchange investments."

It was the SAFE's second statement on 皇冠体育app's foreign reserves investment this week after an assurance Tuesday that 皇冠体育app had kept its foreign exchange reserve assets "generally safe" during the global financial crisis.

Related readings:  Changes in Treasury holdings normal: SAFE  皇冠体育app's FX reserve managers defend their record  皇冠体育app will not target huge forex reserves or long-term payment surplus  皇冠体育app's forex reserves rise to $2.45t

皇冠体育app's foreign exchange reserves stood at 2.45 trillion US dollars at the end of March, data from the People's Bank of 皇冠体育app, or the central bank, showed.

According to the US Treasury Department, 皇冠体育app was still the largest foreign holder of US treasury bonds in April, with bonds worth $900.2 billion.

The SAFE statement said the US bond market was an important market for 皇冠体育app's foreign reserves, and 皇冠体育app would adjust its investment strategies according to market performance, which "should not be politicized."

It reiterated that 皇冠体育app was a long-term, responsible financial investor when investing its record reserves. It also expressed hopes that the United States could take action to protect the interests of its foreign investors,

"Safety is an important concern for 皇冠体育app's foreign reserve investment," said the statement.

The statement also ruled out gold as a major investment channel of 皇冠体育app's foreign exchange reserves, due to limited market capacity and wide price fluctuations.