Caixin
OPINION

Opinion: Central Bank Official Defends Management of Forex Reserves

Before 2015, China had $4 trillion in forex reserves, which many criticized as being too much. However, an ensuing massive capital flight caused the reserves to plunge to below $3 trillion, leading many institutions to short the yuan. Photo: Visual China
Before 2015, China had $4 trillion in forex reserves, which many criticized as being too much. However, an ensuing massive capital flight caused the reserves to plunge to below $3 trillion, leading many institutions to short the yuan. Photo: Visual China

Once again, the debate has heated up over who — the central bank or the finance ministry — should be the primary manager of China’s forex reserves.

One view is that our external reserves, now managed by the central bank, are closely connected with inflation, financial risk and even speculative behavior. They suggest forex reserves should be managed by both the central bank and the finance ministry, with the ministry taking the lead.

ladingImg
You've accessed an article available only to subscribers
Try 4 weeks for $0.99
SUBSCRIBE
Share this article
Open WeChat and scan the QR code
Copyright © 2018 Caixin Global Limited. All Rights Reserved.