as the G20.
“As we are now all facing the pressure of the global economic downturn, it is important for countries around the world to know more about each other’s policies and thus to avoid policy conflicts, such as a currency war,” Zhao said.
Although China’s foreign exchange reserve fell in January to $3.23 trillion, the lowest in the past three years, Xiao Lian, an economist with the Chinese Academy of Social Sciences, said the number is still manageable.
“The foreign exchange reserve is affected by many elements, not just import and export numbers,” he said. “China’s foreign reserve outflow has been a trend for one year or so. I believe that if necessary, the government will take due measures to deal with it.”
Xiao also said that it is China’s own decision whether to join the expected “New Plaza Accord”.