The Foreign Exchange Bureau Said It Was Normal To Increase Or Decrease Its Holdings Of US Treasuries.

All along, the outside world is very concerned about China's foreign exchange reserves holdings or reduction of US Treasury bonds, and some even think that China holds large US Treasury bonds, which is a threat to the United States. In this regard, the State Administration of foreign exchange said today that holding foreign exchange reserves is an investment behavior in the market. It is normal investment operation to increase or reduce American Treasury bonds, so there is no need for political interpretation.

Dynamic optimization of investment activities. adjustment operation

The head of the foreign exchange bureau said that the US Treasury bond market is the largest Treasury market in the world, and the US Treasury bonds have better security, liquidity and market capacity and lower transaction costs. For a long time, it is not only a domestic investor, but also an important investment target for international investors, and many central banks in the world hold treasury bonds. The operation of China's foreign exchange reserve emphasizes security, mobility and value preservation. According to its own needs and judgments, diversified asset allocation in the international financial market, and the Treasury bond market is also an important market for China.

"Actually, because of economic cycle Fluctuations, market supply and demand, and many other factors will affect the price volatility of treasury bonds. The changes in other asset prices will also affect the relative attractiveness of treasury bonds. For this reason, we have been paying close attention to, tracking and analyzing all kinds of changes in the investment activities, and constantly carrying out dynamic optimization and adjustment operations, so there is no need for political interpretation. The person in charge said.

He said that after the outbreak of the financial crisis, the United States adopted stimulative monetary and fiscal policies, the fiscal deficit rose sharply, and the proportion of the national debt to GDP increased, which led to the market's concern about the security of assets in the US. China's foreign exchange reserves invest in a long-term and diversified way. Different assets have the same effect and dynamic complementarity. They can effectively control the overall risk of assets, satisfy the liquidity needs and achieve overall value stability. China has also been calling on the United States as a responsible big country to take effective measures to safeguard the sustainable development of the US and the global economy, protect the interests of investors and maintain investor confidence.

Judging the US dollar trend depends on the economic situation of other countries.

When it comes to the trend of the US dollar, the official said that judging the US dollar trend depends not only on the United States but also on the economic situation of other countries. After the crisis, there was a fear of further depreciation of the US dollar in the market. However, we must realize that the depreciation of the US dollar is relative to the currencies of other countries and regions, while other countries and regions also face such or other problems, for example, European governments have a higher debt scale. From the recent trend of the US dollar, it has strengthened against the euro and other currencies. For example, from the end of 2009 to May 2010, the US dollar appreciated by 20% against the euro. Therefore, the next step of the US dollar depends on the prospects of the US economy and the recovery of the world economy, as well as the economic policies of major countries such as the United States.

Gold can not become foreign exchange reserve Main channel of investment

The official said that gold has the advantages of high international recognition, good value preservation function and emergency payment, but at the same time, gold investment is also limited, and it can not become the main channel of foreign exchange reserve investment.

First, the gold market has limited capacity. The annual output of the global gold is only about 2400 tons, and the supply and demand relationship is basically balanced. If China buys gold on a large scale, it will certainly push up the international gold price. While China's gold price is basically in line with the world, the Chinese people will go to the department store retail counters to buy gold jewelry and other commodities, and will face the problem of price rise, which will eventually hurt the interests of domestic consumers.

Second, gold prices fluctuate greatly. International gold price is vulnerable to the influence of exchange rate, geopolitics, supply and demand, speculation and so on. It often fluctuates greatly, and gold does not generate interest income. It also needs to bear the cost of warehousing, transportation, insurance and so on. From the past 30 years' performance, the risk and return characteristics of gold are not very good. Gold has the characteristics of inflation protection, but many other assets also have this characteristic.

Finally, the overall effect of increasing holdings of gold reserves on foreign exchange reserves is not significant. Over the past few years, China has increased more than 400 tons of gold reserves. At present, China's gold reserves have reached 1054 tons, even if it doubled again, it can only scatter $34 billion in foreign exchange reserves, and the proportion of gold reserves in foreign exchange reserves has increased by only one or two percentage points.

"All in all, we will consider carefully the increase or reduction of gold, according to the needs and market conditions." The person in charge said.