The monthly situation released by the central bank at the same time shows that the balance of China's foreign exchange reserves at the end of October 206 has exceeded US$1 trillion, reaching US$1,096.26 billion; at the end of November 2006, it reached US$10,387.51 billion.
The foreign exchange reserve table over the years shows that before 1979, China’s foreign exchange reserves never exceeded $1 billion, and even in a few years it was still negative. However, with China's reform and opening up, the economy continued to grow, trade developed at a high speed, and foreign exchange reserves began to increase rapidly.
From the growth of foreign exchange reserves, it reached 2.7 billion US dollars for the first time at the end of 1981; it broke through 10 billion US dollars for the first time at the end of 1990, reaching 11.09 billion US dollars; the first breakthrough of 100 billion US dollars at the end of 1996; the threshold of 200 billion US dollars at the end of 2001; It reached 609.9 billion US dollars; it reached 818.9 billion US dollars at the end of 2005. At the end of February 2006, China’s foreign exchange reserves increased to 85.53 billion US dollars, surpassing Japan’s becoming the country with the largest foreign exchange reserves.
"Foreign exchange reserves are a manifestation of the accumulation of wealth and comprehensive national strength of a country." Zhao Xijun, a professor at Renmin University of China, said, "Over 1 trillion US dollars of huge reserves means that China has sufficient international payment capacity, and to a certain extent, it also shows Our country is enough to affect the economic strength of the world."
A huge amount of foreign exchange reserves is certainly a manifestation of comprehensive national strength. However, sustained and excessive growth has also brought some negative impacts on the economy and is likely to trigger trade friction. At present, China has established a macro policy orientation to maintain the basic balance of international payments. Zhang Yansheng, director of the Institute of Foreign Economic Research of the National Development and Reform Commission, suggested that in the future, while maintaining a reasonable growth in exports and utilization of foreign capital, it should actively expand imports and improve the quality of foreign capital utilization.
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
From: Central government portal
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