The report was published in official newspaper the China Securities Journal and confirmed analysts' estimates that about two-thirds of the reserves are invested in dollars. Until now the allocation of China's foreign exchange reserves was considered a state secret.
Separately Hu Xiaolian, a vice governor with the People's Bank of China, warned that depreciation was a risk for the foreign exchange reserves held by developing countries.
"Once a reserve currency's value becomes unstable, there will be quite large depreciation risks for assets," she wrote in an article that appeared in the latest issue of China Finance, a central bank magazine.
"The outbreak and spread of the global financial crisis has highlighted the inherent deficiencies and systemic risks in the current international currency system," she said.
"A diversified international currency system will be more conducive to international economic and financial stability," she added, calling for greater cross-border use of the yuan.
China has signalled a shift away from dollar assets in recent months, in a bid to diversify. It has sharply increased its net purchases of Japanese debt, and has raised its holdings of South Korean bonds.
Full text
Comment: In typical Chinese patience, China is trying to diversify as much as it can without making the system crash prematurely. It will be in the final stages of this balancing act when hell will break loose.
Separately Hu Xiaolian, a vice governor with the People's Bank of China, warned that depreciation was a risk for the foreign exchange reserves held by developing countries.
"Once a reserve currency's value becomes unstable, there will be quite large depreciation risks for assets," she wrote in an article that appeared in the latest issue of China Finance, a central bank magazine.
"The outbreak and spread of the global financial crisis has highlighted the inherent deficiencies and systemic risks in the current international currency system," she said.
"A diversified international currency system will be more conducive to international economic and financial stability," she added, calling for greater cross-border use of the yuan.
China has signalled a shift away from dollar assets in recent months, in a bid to diversify. It has sharply increased its net purchases of Japanese debt, and has raised its holdings of South Korean bonds.
Full text
Comment: In typical Chinese patience, China is trying to diversify as much as it can without making the system crash prematurely. It will be in the final stages of this balancing act when hell will break loose.
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