China's Forex Reserves Hit One Trillion Dollars

Nov. 6, 2006
Figure tops Japan as world's largest.

China's foreign exchange reserves have reached one trillion dollars, according to the State Administration of Foreign Exchange. The reserves stood at $987.9 billion at the end of September.

China's foreign exchange reserves overtook Japan's as the world's biggest in February.

The inflow of foreign direct investment and a continuous stream of money aiming for short-term speculative gains have both helped reserves reach their current size, but booming exports are by far the most important factor. The growth in the reserves is a by-product of the central bank's determination to keep the local currency, the yuan, stable.

The accumulated trade surplus in the first nine months rose to$110 billion, already bigger than the $102 billion recorded for all 12 months of 2005, according to customs data.

The inflow of money puts upward pressure on the Chinese currency, and the central bank has to counteract this by buying up foreign currency, adding to the already bulging reserves.

Copyright Agence France-Presse, 2006

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!