Zhou Says China Currency Reserves Beyond ‘Reasonable’ Level
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China’s foreign-exchange reserves have exceeded a “reasonable” level and the management and diversification of the holdings should be improved, central bank Governor Zhou Xiaochuan said.
Increases in the holdings, which topped $3 trillion in March, are putting pressure on central-bank operations that withdraw money from the financial system, Zhou said after a speech at Tsinghua University in Beijing late yesterday. Zhou spoke of the need to reduce an excessive accumulation of reserves, using a Chinese word that could refer to either existing holdings or the pace of the build-up.