Business News
China's foreign exchange reserves hit 3.2 trillion dollars
Jul 12, 2011, 9:13 GMT
Beijing - China's foreign exchange reserves jumped by 153 billion dollars in the second quarter of this year to the equivalent of 3.2 trillion dollars, the central bank said on Tuesday.
Total reserves were up 30 per cent year-on-year at the end of June, the People's Bank of China reported.
The bank said new lending by commercial banks rose to 634 billion yuan (98 billion dollars) last month from 552 billion yuan in May, another possible indicator that the government has not yet tamed inflation.
But it said total lending in the first half of the year fell by 450 billion yuan to 4.17 trillion yuan.
In a separate statement, the bank dismissed as 'groundless' a report by Moody's financial ratings agency that suggested China's local government debts to state banks was much larger than the government had reported.
Moody's said it found up to 3.5 trillion yuan of possible additional loans after comparing government audit figures, which said local government debt totalled 10.7 trillion yuan, with statistics from Chinese banking regulators.
Up to 12 per cent of the lending by Chinese banks could be non-performing loans, Moody's said.
The central bank said Moody's new total of 14.2 trillion yuan for estimated local government debt was 'incorrect' and that the 'risks associated with local government debts are controllable.'
China's consumer price inflation hit a three-year high of 6.4 per cent in June, despite six increases in the bank reserve ratio and three interest rate hikes this year.
COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
