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China's forex reserve not investment fund: central banker

(Xinhua)
Updated: 2009-07-18 10:48

China's Central Bank Governor Zhou Xiaochuan said Friday that the country's foreign exchange reserve should not be seen as "an investment fund", so it should not be looked on as a profit source.

Related readings:  Chinese forex kitty aids US moves  China's foreign reserves top $2.13t by June  Stable forex reserve serves our interest  China's external debt rises slightly in 2008

"If the foreign exchange reserve can produce reasonable returns, it is good enough," Zhou said at Peking University when delivering a speech.

China had reserves of $2.13 trillion in June, the largest in the world.

He said the increase in the reserve could bring the country many advantages, adding that agencies using foreign exchange reserve to invest should endeavor to guarantee security and value appreciation, without specifying the names of the agencies.

In 2007, China set up the China Investment Corporation, with a registered capital of $200 billion. The Beijing-based company is investing in equities, fixed income and alternative assets worldwide.