Goldman Sachs asset management company President Jim o ' Neill is the loyal fans of English Premier League-Manchester, Manchester United at the weekend ahead of Coronation finally relieved him. Of course, almost like another "Red Devils" Crown share his concerns, this is China's foreign exchange reserves.
above $ 3 trillion reserves in China for more than a month ago, not only ranked reserve list champions and far lagged behind second place.
o ' Neill the first 10 years ago "BRICS" concept is one of the world's top Exchange experts, former Chief Economist at Goldman Sachs, he think that the present scale of China's foreign exchange far exceeded the actual demand. China's foreign exchange reserves of twice the annual total imports, while traditional economic theory is that the imports of a country's foreign exchange reserves to pay for 3 months is enough.
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Greece prospects douzeng variables euro downward risk or increased IMF variable array suspicion RMB exchange rate current underestimated insufficient 2% eurozone April inflation rate create 30 months high euro continued fell prospects difficult material IMF are power vacuum parties rivalry took over as who United States borrowing ceiling of race increasingly intense national day Xin months site revealing three quarter layout opportunity China reserves not only scale had large And rapid growth. After June 2010 beyond the $ 2 trillion, in less than a year but rose US $ 1 trillion. He believes that China's foreign exchange reserves is rapid increase in the short term, not caused by trade, but directly relevant to the Renminbi exchange rate.
in the first quarter of 2011, China's foreign exchange reserves rose 24.4%. The rapid growth of concern. A small deficit due to China's foreign trade for the first quarter, added should be the main reason of foreign exchange reserves in Renminbi appreciation along with large amounts of foreign direct investments and speculative "hot money" accelerated flow into China.
$ when the world's reserve currency in the United States under the influence of government policies after the depreciation of the anthropogenic global investors towards more firm renminbi is a natural thing. But with 3 trillion dollar reserves in China, certainly not wait for wealth, this requires looking for diversification of the assets management approach, for example, increase investment in sovereign investment fund range.
in addition, too huge foreign exchange reserves increased inflationary pressures, reducing Central Bank monetary policy tools to address the effects of excess liquidity. O ' Neill's solution is to accelerate the pace of renminbi appreciation and space, he thinks it can make less easy to forecast the trend of RMB trend, this is a good thing for RMB.
a Xinhua reporter Wang Yahong
