China Expects to Maintain Current Reserve Levels

Saying that its $2.5 trillion reserves are not a “weapon” to be politicized, Beijing moved to ease concerns that it could be shifting its reserves to hold more gold at the expense of the dollar. China’s foreign exchange oversight board said yesterday that it is a long-term investor and “doesn’t seek the power to control recipients of its investment.”

Officials did send one blunt message to Washington however, calling on the US government to do more to maintain the value of the dollar in order to protect China’s considerable investment in the greenback.

Source: Associated Press

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