Forex Reserves

[sarahfx]

The rebound range of China export in the first quarter of 2011 was stronger than the expected, resulting in that the trade surplus went up sharply to 41 billion U.S dollars from the 14.5 U.S billion in the first quarter, which formed RMB appreciation pressure again.

The huge amount trade surplus is always one of the major sources of the China foreign exchange forex reserves. At present, China possesses the most foreign exchange forex reserves all over the whole world.

It is revealed by the State Administration of Foreign Exchange (forex) that China foreign exchange reserves newly increased 81 billion U.S dollars of year 2011.

Even though the majority of forex reserves are held with the US Treasury bonds, People’s Bank of China decentralized the forex reserves with accumulation the Japan and Korea bonds.