Big forex shake-up 'needed'

Official wants key role for ministry in the handling of reserves

China needs to reform the management of its massive foreign exchange reserves to address excess leverage in the financial sector, a senior legislator said on Thursday.

Huang Qifan, vice-chairman of the economic and finance committee of the National People's Congress, the country's top legislature, said the current foreign exchange management has jeopardized the country's monetary policy and was part of the reason for the excess liquidity and chaotic activities in the financial sector.