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Article: China Urged to Control Its Foreign Exchange Reserves
- Article from:
- Xinhua News Agency
- Article date:
- October 23, 1996
CopyrightCopyright 1996 Xinhua English Newswire. Provided by ProQuest LLC. (Hide copyright information)
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A scholar of the Research Institute of Finance and Banking of the
People's Bank of China has said that China should keep its foreign
exchange reserves within a reasonable range.
"Although a certain amount of foreign exchange reserves are
necessary to ensure a country's viability, this does not mean that
the more foreign exchange reserves there are, the better," noted Lin
Zhiyuan, of the Research Institute.
China's foreign exchange reserves surpassed 95 billion US dollars
by the end of September, up almost 21.4 billion US dollars from last
year, and about 4.5 times those at the end of 1993.
"The strong increase in foreign exchange reserves since 1994 has
had a negative effect on the domestic ...