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Dollar stumbles vs yen on China reserves comments
Tue Mar 20, 2007 10:57 AM ET
By Lucia Mutikani
NEW YORK (Reuters) - The dollar fell sharply against the yen on Tuesday, erasing earlier gains, after a magazine reported that China would stop stockpiling foreign exchange reserves.
The Emerging Markets magazine quoted Chinese central bank Governor Zhou Xiaochuan as saying "many people say that foreign exchange reserves in China are (already) large enough."
"We do not intend to go further and accumulate reserves," Zhou was quoted as saying in the magazine, which was released at a meeting of the Inter-American Development Bank in Guatemala.
China's reserves, which amount to more than $1 trillion, are already the world's largest and have been growing at a brisk pace as China buys foreign currencies to keep the value of the yuan from appreciating beyond a tight trading band.
The bulk of China's reserves are held in U.S. dollars.
Tue Mar 20, 2007 10:57 AM ET
By Lucia Mutikani
NEW YORK (Reuters) - The dollar fell sharply against the yen on Tuesday, erasing earlier gains, after a magazine reported that China would stop stockpiling foreign exchange reserves.
The Emerging Markets magazine quoted Chinese central bank Governor Zhou Xiaochuan as saying "many people say that foreign exchange reserves in China are (already) large enough."
"We do not intend to go further and accumulate reserves," Zhou was quoted as saying in the magazine, which was released at a meeting of the Inter-American Development Bank in Guatemala.
China's reserves, which amount to more than $1 trillion, are already the world's largest and have been growing at a brisk pace as China buys foreign currencies to keep the value of the yuan from appreciating beyond a tight trading band.
The bulk of China's reserves are held in U.S. dollars.
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