SAFE: Foreign Exchange Reserves are not hard-earning money cannot be distributed

At the end of June, China’s foreign exchange reserves are reached at 3197.49 billion dollars, 30% increasing. How to management the huge amount of wealth is becoming the most popular issues these days.

Ask: In some opinions the foreign exchange reserves of China is the ordinary people’s hard-earning money, what’s your opinion?

SAFE: the foreign exchange reserves of China is becoming from purchasing in the foreign exchange market with the base money. The local currency fund derives from the debts of Central Bank. The corresponding RMB has been pay to the original holder of foreign exchange. In other words, the reserving of foreign exchange is not handed out to the government, but sell and being repaid for equal RMB. The economic interest has been fulfilled when exchanges are accomplished.

Source: Guangzhou Daily

Translated and edited by Yang Jingmin

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