China's foreign exchange reserves could exceed US$1 trillion by the end of 2006 unless domestic demand kicks in to reduce the country's trade surplus, a leading government researcher told state media Thursday. Ba Shusong, vice-head of the financial research institute at the cabinet's Development Research Center, said that China was committed to greater currency flexibilty but the pace of change would depend on a movement from export to consumption-led growth. China's reserves stood at US$769 billion at the end of September.
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