China's foreign exchange reserves top $1 trillion
China's foreign exchange reserves have hit $1 trillion, state news sources said on Monday, citing an unnamed source at the country's foreign exchange regulator.
In Monday trading, the euro remained almost motionless at $1.275 and slipped marginally from yen 150.50 to yen 150.40, while the dollar slipped to yen 118.20.
The reserves hit $987.9 billion at the end of September and had been projected to hit $1 trillion in early November.
The International Monetary Fund estimates that China will hold reserves of $2 trillion by 2010. Chinese government officials would not immediately comment on the reports.
The government has previously pledged to use the reserves in the interests of global economic stability.
Some government analysts have publicly advised reserve managers to diversify the fund, which is predominantly in US debt, to insure against currency movements.
Others have added that any significant sell-off of the dollar would damage the US currency and destabilise the financial markets, however.