The dollar has declined 7.5 percent against the euro since reaching a four-year high on June 7 as concern eased that a debt crisis would spread from Greece across the continent. Europe remains a key investment destination for China's foreign-exchange reserves, Premier Wen Jiabao told German Chancellor Angela Merkel in Beijing on July 16,
christian louboutin pas cher, according to the Xinhua News Agency.
China has slashed holdings of short-term US debt,
louboutin pas cher, including bills,
doudoune moncler, which dropped to $6.8 billion in May from a peak of $210.4 billion a year earlier, Treasury data showed.
China, the biggest foreign investor in US government bonds, lowered its holdings by $32.5 billion in May to $867.7 billion, the Treasury Department reported in Washington on July 16. The nation bought a net 735.2 billion yen ($8.3 billion) of Japanese bonds in May,
moncler, doubling purchases for this year.
The nation should convert some holdings currently in US dollars into assets denominated in other currencies, commodities and direct investments overseas, he recommended. China's dollar assets are surplus to requirements and the proportion is too high, Yu said.
Euro swings
2010-07-20 13:33
The benefits of investing in US government debt include "relatively good" safety, liquidity and low trading costs, the State Administration of Foreign Exchange said July 7 in a statement on its website. China increasing or cutting the amount of US debt it owns "is normal" and decisions are made based on market conditions, it said.
Yu said in an interview in May that swings in the euro shouldn't have a "significant impact" on China's strategy of diversifying its foreign-currency reserves. He said an "appropriate" policy for China would be to allocate its reserves with reference to the weightings of Special Drawing Rights, a unit of account of the International Monetary Fund.
China should reduce its holdings of US dollar assets to diversify risks of "sharp depreciation,
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Moncler sito ufficiale, a former adviser to the central bank, wrote in a commentary in the China Securities Journal.
"It's completely possible and also necessary for China to expand direct investments in Asia, Africa and Latin America," he wrote. "It's also a rare opportunity for Chinese companies to acquire businesses overseas."
It is a good time to sell because demand for US Treasuries is high,
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piumini moncler, Yu said, according to the article.
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