People’s Bank of China Deputy Governor Yi Gang told journalists at a Sunday press conference that China’s foreign exchange reserves were comprised only of highly liquid assets, The Financial Times reported. Skeptics claim the headline total of reserves exaggerates the resources available to support the yuan, suggesting that the total includes illiquid assets such as foreign real estate and private-equity investments that cannot be readily deployed in currency markets. Yi asserted otherwise at the press conference: “I can clearly tell everyone here, those assets that don’t meet liquidity standards are entirely deducted from official foreign exchange reserves”.
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