MercoPress. South Atlantic News Agency

China’s forex reserves already world’s largest surge to 2.65 trillion USD

said holdings rose 194 billion USD in third quarter

China's foreign exchange reserves, the world's largest, surged to US$2.65 trillion at the end of last month, adding fuel to complaints that the nation's curbs on gains in the Yuan are undermining the global recovery.

Currency holdings rose about 194 billion USD in the third quarter, said the People's Bank of China. Exports in September were the second-highest on record at 145 billion, a separate customs bureau report showed.

Yuan forwards traded near a two-year high yesterday on anticipation that Chinese Premier Wen Jiabao will allow greater gains and on signs the US Federal Reserve may inject more stimulus, a move that could spur capital flows to Asia.

Europe and the US have been pressing China to move more quickly to appreciate its currency, hoping that this would temper Chinese exports by making them more costly while bolstering exports to China.

Beijing has said repeatedly that it intends to allow its currency to appreciate and fluctuate with market forces - but at its own pace. Too sharp a move could create huge dislocations in the country's coastal factory zones, which employ tens of millions of migrant workers, the government said.