SAFE: Forex will be used to boost domestic demand

China will use its foreign exchange reserves to boost imports and domestic demand as part of its efforts to check the economic slowdown, according to the State Administration of Foreign Exchange (SAFE). Fang Shangpu, deputy director of SAFE, also said further measures would be introduced to help Chinese firms to expand overseas, state media reported. Fang’s remarks appear to confirm Premier Wen Jiabao’s statement at the World Economic Forum in Davos that China would use its foreign exchange reserves to boost the domestic economy. However, another SAFE official said the government is determined to keep the exchange rate "generally stable."