Financial Times FT.com

Regulator's statement raises questions over China's forex policy

By Geoff Dyer in Shanghai and Andrew Balls in Washington

Published: January 7 2006 02:00 | Last updated: January 7 2006 02:00

China's foreign exchange regulator raised more questions than it answered with a statement on Thursday evening about a possible change in its strategy for managing the country's burgeoning foreign currency reserves.

Buried in an announcement about the agency's objectives for 2006, the State Administration of Foreign Exchange (Safe) said it wanted to "optimise the currency and asset structure" of the country's foreign ex-change reserves and to "actively boost investment returns".

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