He Yafei: Dollar will remain major reserve currency

Vice Foreign Minister He Yafei said that the US dollar would remain a major reserve currency in years to come, Reuters reported. He made the comments speaking at a briefing session ahead of the G8 summit in Italy, noting that it was "natural" that Chinese officials had expressed concern about the safety of China’s US dollar assets. "The US dollar is still the most important and major reserve currency of the day, and we believe that that situation will continue for many years to come," He said. Characterizing recent debate over reserve currencies as an intellectual exercise, He noted that the establishment of a super-sovereign currency was not the position of the Chinese government. China is thought to hold as much as 70% of its nearly US$2 trillion in foreign exchange reserves in US dollar assets.