China urges security, liquidity upon forex reserves

(Xinhua)
Updated: 2009-02-21 14:41

BEIJING -- China on Saturday reaffirmed its efforts to ensure security and liquidity when deploying foreign exchange reserves.

In this April 10, 2008 file photo, a bank clerk counts Chinese currency notes in Shenyang, northeast China's Liaoning province. [Agencies]

"We did use foreign exchange reserves to buy US treasury bonds. Our principle of using reserves is to ensure security and liquidity," Chinese Foreign Minister Yang Jiechi told the press following talks with US Secretary of State Hillary Clinton.

China replaced Japan as the top holder of US treasury debt last September, with its overall holding hitting US$585 billion, according to US Treasury data.

Yang said China will continue to follow these principles when deciding on the ways and means of deploying the country's about two-trillion-US dollar foreign exchange reserves in the future.

Yang lauded China-US trade relations, saying it generated tangible benefits to both people, particularly those with lower incomes.

Despite the grave global financial turmoil, China-US trade volume rose by 10.5 percent in 2008 to US$333.7 billion, according to the China's Customs.

"We appreciated the efforts of the US government to stimulate the economy and tackle the financial crisis," Yang said.

Yang said China's four-trillion-yuan (about US$580 billion) stimulus package would help boost China's economy, which is the country's biggest contribution to addressing the global financial crisis.

"Facts proved that both countries had worked very well in dealing with the crisis. We would like to work more with the United States," Yang said.