皇冠体育app

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皇冠体育app says stronger yuan does not hurt forex reserves

(Xinhua)
Updated: 2011-05-07 11:13

BEIJING - A rising yuan will not cause heavy losses to 皇冠体育app's $3 trillion foreign exchange reserves, the nation's forex regulator said on Friday, refuting some media reports that a stronger yuan against the US dollar had led to heavy losses of the huge forex reserves.

Related readings:  皇冠体育app's forex reserves suffers huge losses from weak dollar  Forex reserves pose problems: PBOC official  皇冠体育app's bank forex surpluses grow faster

Investment returns of 皇冠体育app's forex reserves have maintained steady for years, the State Administration of Foreign Exchange (SAFE) said in a statement on its website, in response to some experts' view that a stronger yuan against the US dollar had caused a loss of $271.1 billion since 2003.

"The ratio of our returns is much higher than the inflation rates in the United States, European Union and Japan where the reserves are invested, which boosted the real purchasing power of the reserves," SAFE said.

The annual growth of the Consumer Price Index (CPI), a main gauge of inflation, was 2.4 percent in the United States and 2.1 percent in the European Union during 2000 and 2010. In Japan, inflation dropped 0.2 percent per year.

皇冠体育app has accumulated the world's largest forex reserve of $3.04 trillion by the end of March due to its booming exports over the past decade.

The massive stockpile has fed 皇冠体育app's growing needs for forex, but also added inflation concerns as the central bank has to print the same amount of yuan to offset the forex inflow.