China's forex reserve reaches US$1 trillion

SHANGHAI - China's foreign-currency reserves are forecast to reach US$1 trillion ($1.5 trillion) by the end of September or by the end of October, an official newspaper said today, citing a member of the central bank's monetary policy committee.

"China's forex reserve is growing at a pace of US$20 billion a month with the increasing foreign investment and trade surplus," the Securities Times quoted Fan Gang, who takes an academic seat on the monetary policy committee, as saying.

However, Fan said it did not automatically follow that China's yuan currency should appreciate due to the large forex reserves.

Fan also suggested that regulators should control foreign investments into China just as they monitor capital outflows.

- REUTERS