皇冠体育app

Economy

Markets

Industries

Insights

Reports

Events

皇冠体育app to keep buying US Treasuries: central banker

(Agencies)
Updated: 2009-03-23 16:08

皇冠体育app will continue to buy US Treasuries, viewing the credit risk as low overall, a senior central bank official said on Monday.

"Investing in American Treasuries, as an important part of our foreign exchange reserve management, will continue," Hu Xiaolian, a vice governor of the People's Bank of 皇冠体育app, told a news conference on 皇冠体育app's preparations for next month's G20 summit in London.

Related readings: Clinton urges 皇冠体育app to continue buying US Treasuries 皇冠体育app becomes biggest US treasuries holder  Allure of US Treasuries set to fade

Premier Wen Jiabao said on March 13 that he was worried about 皇冠体育app's heavy exposure to the United States.

Bankers assume about two-thirds of 皇冠体育app's nearly $2 trillion in reserves is parked in dollar assets, primarily US government and other bonds.

Hu, who is also head of the State Administration of Foreign Exchange, said 皇冠体育app would pay close attention to changes in the value of its Treasury holdings.

"US Treasuries are an important part of our foreign exchange reserves. So we naturally care about the security and investment return on US Treasuries," she said.

Turning to the dollar, Hu disputed the argument heard in some circles that the US economy and markets are in such deep trouble that the dollar's global supremacy is under threat.

She said 皇冠体育app's view was that studies could begin of a multi-polar global currency system but that the dollar remained the key currency in terms of trade, settlement, payments and pricing.

The dollar also dominated financial investment. That was why 皇冠体育app, though favoring research into a new multi-currency system, believes the current priority is to step up supervision of the US economy and its financial markets, Hu said.

On the currency composition of 皇冠体育app's reserves, she said the central government took long-term factors into account such as the structure of 皇冠体育app's payments and trade; the risks and returns on various currencies; and the liquidity of different currencies.

皇冠体育app would not be swayed in determining the make-up of its portfolio by short-term volatility in currency markets, she said.