Beijing promises better returns on forex
24 October 2007
China's foreign exchange regulator promised on the sidelines of the 17th Communist Party Congress that the country's foreign exhange reserves will be better managed, state media reported. Hu Xiaolian, administrator of the State Administration of Foreign Exchange said that the reserves will become more profitable while maintaining strong liquidity and safety. Part of the plan will include raising the quotas allowed under the Qualified Domestic Institutional Investors (QDII) and Qualified Foreign Institutional Investor (QFII) programs, she said. Hu hopes that these measures will improve capital outflow, which will help to correct the large imbalance of China's trade surplus. In May, Hu promised to expand the quota on QFII investments to US$30 billion. China's foreign exchange reserves were valued at US$1.43 trillion as of September.
Bookmark and Share:
