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China says forex reserves hit record $2.447 trln
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China says forex reserves hit record $2.447 trln
AFP - Tuesday, April 13
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China says forex reserves hit record $2.447 trln
Slideshow: Full Photo Coverage: Business & Economy
BEIJING (AFP) - – China's foreign exchange reserves surged to a record 2.447 trillion dollars at the end of March, the central bank said on Monday.
The reserves, already the world's largest, grew 25.25 percent from 1.9537 trillion dollars a year ago, the People's Bank of China said on its website.
The central bank had said previously its reserves were at 2.399 trillion dollars at the end of December.
China's forex reserves have ballooned in recent years, fuelled by strong foreign investment, large trade surpluses and inflows of "hot money" -- short-term speculative funds in search of quick profits.
Exports, a key driver of China's forex reserve hoard, softened in 2009 but have rebounded since December, when they snapped a 13-month losing streak.
Overseas shipments in March rose 24.3 percent from the same month a year earlier, while imports soared 66 percent year-on-year, giving China its first trade deficit in six years, official data released Saturday showed.
Foreign direct investment in China rose 4.86 percent on-year to 14.02 billion dollars in the first two months of 2010, according to government figures.
China has invested a large portion of its vast reserves in US dollar assets, such as safe low-yielding US Treasury bonds, but amid the financial crisis Beijing has tried to diversify its investments to improve returns.
One way Beijing has been doing this is through its 300-billion-dollar sovereign wealth fund, China Investment Corp, which has been investing heavily in resources companies.
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