Yi Gang: China's Forex Reserves Increase In Value

By staff reporter JIAO FENG

Yi Gang, a CPPCC member and deputy governor of People's Bank of China (PBOC), said that the earnings of China's foreign exchange reserves have outpaced the Consumer Price index (CPI) of of those currency's home countries. China's foreign exchange reserves have appreciated in real value, said Yi,  who is also head of the State Administration of Foreign Exchange. 

China's foreign exchange reserves, already the world's largest, reached US $3.82 trillion at the end of 2013, data from the PBOC show. 

According to Yi, about one third of China's foreign exchange reserves are invested in US government bonds, which are highly regarded for their liquidity and trustworthiness, making them a favorite for global investors. Yi also said that China chooses investments which balance diversity, safety, liquidity and profitability.