Putting great store in Sino-UK ties
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"Some international funds will flee from dollar assets because of the (US) Fed's easing, and China's SAFE is trying all means to plug loopholes in possible channels for hot-money inflows," said Zhao Qingming, a senior financial analyst at China Construction Bank in Beijing, the country's second-largest lender.
"This is to ask banks to hold more foreign currency to help ease pressure on the growing size of China's foreign exchange reserves," Zhao said. "To some extent, it can help limit yuan gains in the short term."
China's foreign exchange reserves reached $2.65 trillion by the end of September. The yuan, meanwhile, has risen continually since mid-June, further stoking the fire for capital inflows.
China called for responsible policies from the developed economies.
"The world economies should take responsible fiscal and monetary policies (to help global economic recovery)," said Li Dongrong, assistant governor of the People's Bank of China, the central bank.
China and the UK both agreed at the dialogue that the G20 should be the premier forum for international economic cooperation and major international institutions, such as the International Monetary Fund, should continue its reform process.
"Both sides agree that the heads and senior management of the international financial institutions should be appointed on merit, with no regards for nationality and that (their) staffing should be diversified," read a statement issued after the meeting.
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