China won't dump US Treasuries or pile into gold

Written by: Mamatha
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New Delhi, July 8 (ANI): The State Administration of Foreign Exchange (SAFE) in China has ruled out the option of dumping its US Treasury securities holdings, worth 2.45 trillion dollars, and called on Washington to be a responsible guardian of the dollar.

According to The China Daily, the SAFE described Beijing as a responsible long-term investor and "doesn't seek the power to control recipients of its investment."

The statement was issued to allay concerns about Beijing planning to shift its holdings of US government debt.

"Any increase or decrease in our holdings of US Treasuries is a normal investment operation. The agency constantly adjusts its portfolio to maximize returns, and any changes to its US Treasury portfolio should be seen in that light and not interpreted politically," it said in the statement.

China has the biggest overseas holdings of US Treasuries, having in April boosted its investment in the securities by five billion dollars to 900.2 billion dollars, according to US Treasury data released on June 15.

In response to a question on whether China's 2.45 trillion dollar stockpile of foreign currency could be used as an "atomic weapon," the Chinese regulator said: "Facts have proven that such worries and concerns were definitely unnecessary."

"We will actively deepen cooperation with countries that welcome our investment. If they have any doubts or worries, we will slow down the pace and enhance communication with an aim to achieve consensus," it said. (ANI)

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