April 12, 2008	Saturday	Rabi-us-Sani 5, 1429

BEIJING, April 11: China’s foreign exchange reserves, already the world’s largest, climbed to $1.682 trillion at the end of March, the central bank said on Friday.

The figure reflects a rise of 39.9 per cent from a year earlier, and a 10.1 per cent increase from the end of 2007, according to data posted on the People’s Bank of China’s website.

The fast forex growth came amid rising official concerns of a fresh surge in hot money inflows, spurred by a strengthening yuan and a widening spread between falling US interest rates and rising Chinese rates.

The forex reserves climbed $153.9 billion in the first quarter, more than double the amount of money that came into the country through the trade surplus and foreign direct investment during that period.

“The likelihood of China being taken as a harbour by international capital, especially hot money, is increasing,” Friday’s Shanghai Securities News quoted Zhang Yutai, director of a key think tank under the cabinet, as saying.

“It will further worsen the excess liquidity in the country and add pressure on the yuan to rise,” said Zhang of the Development Research Centre of the State Council.—AFP