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China Reserves

China unlikely to cut US$ reserves: official

(SINGAPORE) China has no plans to sharply reduce US dollar assets in its US$1.2 trillion foreign currency reserves, a senior central bank official was quoted as saying after Beijing cut its stock of US government debt in April for the first time in 18 months.

'It's highly unlikely that there is going to be a serious reduction in China of its dollar reserves,' Yi Gang, an assistant governor at the People's Bank of China, told Dow Jones on Monday. 'Our investment is in dollars so we need the reserves,' he said on the sidelines of the World Economic Forum in Singapore.

The US Treasury Department's international capital data for April, released earlier in June, showed China's holdings of US government debt fell by US$5.8 billion to US$414.00 billion, reflecting a net selling position for the first time since October 2005.