China is unlikely to sell foreign reserve US dollar assets to diversify its holdings, the chief of research at the central bank said on Tuesday, contradicting market speculation. Tang Xu told Reuters that media had misinterpreted a foreign exchange regulator statement as meaning China would sell dollar assets. "No one is willing to put all of their eggs in one basket and it is impossible for China to put all its forex reserves, which exceed US$800 billion, in one currency," he said. "But it is unlikely that China would reduce its current dollar assets to increase the proportion of other assets".
Categories