Beijing urged to cut US exposure

[FarCenter]

Katherine Ng

Tuesday, October 27, 2009

China should reduce its US assets appropriately and increase its euro and yen reserves to reduce risks, a central bank official says.
Zhou Hai, who heads the financial research center at the Harbin branch, said although the US dollar should remain the principal currency, the People's Bank of China should cut its greenback holdings at an appropriate time to reduce risks.

The official, writing in yesterday's Financial News, said it would be better for the central bank to shift to euros and yen to strike a balance in its US$2.27 trillion (HK$17.7 trillion) reserves.

Zhou's views were echoed by more than 80 percent of economists in a global survey. Around 36 percent of 249 economists forecast China will cut its US-denominated foreign reserve assets to 50 percent in five years, according to the poll by Mannheim-based Centre for European Economic Research.

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http://www.thestandard.com.hk/news_detail.asp?pp_cat=1&art_id=89671&sid=25843507&con_type=1

[The_Casual_Observer]

1. I remember a time when there was no exchange of currency with

Russia or communist china. How did we ever survive?

[lib2DaBone]

2. Stop buying cheap plastic junk from China.. bring our jobs home..

[SoCalDem]

3. Just like drug dealers.. they have us hooked on cheap plastic crap

and we're in debt to them, so now it's time to cut us off and send us to see their debt collector..