China cuts Treasury holdings -report
 

China cuts Treasury holdings -report

By CBS MarketWatch
Nov. 25, 2004

TOKYO (CBS.MW) -- China has cut the size of its U.S. Treasury bond holdings in its foreign exchange reserves to $180 billion to avoid losses from a weakening dollar, according to a published report.

A report in the Shanghai-based China Business News cited Yu Yongding, a member of the monetary policy committee under the central bank, according to AFX-Asia.

The report did not say how much of a reduction in Treasury debt the cut represented. The central bank normally does not disclose the composition of its foreign exchange holdings.

Yu, speaking at a seminar given at Shanghai University of Finance & Economics, was quoted as saying that China has cut the portion of U.S. dollar-denominated assets as part of its foreign exchange reserves. He said this was largely a reduction in Treasury debt.

The report quoted an unidentified source as saying that U.S. dollar-denominated assets have in the past accounted for about 80 percent of China's foreign exchange reserves. Most of the U.S. dollar assets were Treasury bonds or bills.

China's foreign exchange reserves stood at $514.5 billion at the end of September
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