China's foreign exchange reserves had climbed to US$987.9
billion by the end of September, up 28.46 percent on the previous
year, the People's Bank of China reported yesterday.
The central bank report said the reserves increased by US$169
billion in the first nine months of the year.
Official figures show the increase in reserves fell to US$15.9
billion in September from US$17.5 billion in August, but still
higher than July's US$13.6 billion.
Statistics released on Thursday by the General Administration of
Customs showed that China's trade surplus in the first nine months
of this year hit US$109.85 billion, higher than the total of
US$101.88 billion for the whole year in 2005.
The large growth in trade surplus has exerted greater pressure
on the country to appreciate its currency value.
The yuan's value rose to 7.9087 to the US dollar at the end of
September, bringing the currency's total appreciation to more than
2.66 percent since reform of the RMB exchange rate system began in
July last year.
Premier Wen Jiabao said China placed great importance
on the rational use of the foreign exchange reserves, which should
be used to increase imports of advanced technologies and to support
the financial reforms and companies' restructuring efforts.
Wen also said restrictions on the use of reserves by
corporations and residents should be eased.
China plans to wipe out the trade surplus by increasing imports.
The trade volume is set to reach US$2.3 trillion by 2010 with an
annual growth of about 10 percent.
(Xinhua News Agency October 14, 2006)
