Official: Foreign exchange reserves ‘adequate’
China's foreign exchange reserves, which have dropped to about $3 trillion from a peak of nearly $4 trillion two years ago, are currently adequate, said a State Administration of Foreign Exchange official.
The official, who declined to be named, said that "$3 trillion is, at least seen from the current situation, adequate". In the future, China's scale of foreign exchange reserves might fluctuate around certain levels, given uncertainties caused by changing domestic and international economic situations, which is normal, she said.
China's reduction of US Treasury securities holdings, meanwhile, is not a strategic move, since US Treasury securities are the most important investment portfolio in the international market, said the official.
China's holdings of US debt fell to $1.12 trillion at the end of October, the lowest level in more than six years, according to US Treasury Department data.
China unloaded a total of $41.3 billion in Treasury securities in October, and Japan replaced it to become the largest holder of US debt, triggering market speculation that China is dumping its dollar assets.