Zhou Xiaochuan: China insists on diversifying the foreign exchange reserving

August 3, Zhou Xiaochuan, the president of People’s Bank of China, commented on the Budget Control Act of America’s congress. China would keep concerning on the progress of the American debt limit, he said. And China’s foreign exchange reserving management would insist the principle of the diversified investment, strengthen the risk administration and reduce the negative impact of the fluctuation of international financial market.

Zhou said, China and the United States kept the effective communications and promoted the mutual understanding under the regime of China-US Strategic Economic Dialogue.

He claimed that the US government bonds is the main sorts of investment and transaction. The significant fluctuations and uncertainties of the bonds market would influent the stability of the international financial system, and even drag down the recovery of world economy. China hope the United States can adopt the responsible polices, based on the interests of its own and the global, and handle the debt issues to guarantee the investment security and the normal operation of the market.   

Source: Xinhua

Translated and edited by Yang Jingmin

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