China’s forex reserves pass $2,000bn

By Richard McGregor in Beijing

Published: July 15 2009 06:33 | Last updated: July 15 2009 19:07

Beijing’s foreign reserve holdings have surged through the $2,000 billion mark, as money pours back into China to take advantage of faster economic growth and rapidly inflating asset prices.

The flow of funds threatens to renew pressure for a revaluation of the renminbi at a time when the government and domestic business are focused on financial stability.

An economist at a state think-tank said Beijing was caught in a squeeze similar to the one that bedevilled policymakers earlier this century, with a flood of hot money trying to force the government’s hand on the currency.


EDITOR’S CHOICE
Lex: China’s $2,000bn foreign reserves - Jul-15 http://www.ft.com/cms/s/2/845cb5fa-7113 ... e2340.html
Dollar falls as China reveals record stockpiles - Jul-15 http://www.ft.com/cms/s/0/c480f2f4-7122 ... e2340.html
Beijing keeps foot on accelerator - Jul-15 http://www.ft.com/cms/s/0/d84d10a8-7152 ... e2340.html
China plans global role for renminbi - Jul-14 http://www.ft.com/cms/s/0/e161ea5c-70a2 ... e2340.html
Lex: China and the US dollar - Jul-10 http://www.ft.com/cms/s/2/9a3da184-6d2d ... e2340.html
Insight: Reservations about the dollar - Jul-06 http://www.ft.com/cms/s/0/60bee546-6a3d ... e2340.html

“The same expectations of a renminbi appreciation will start to accumulate all over again,â€