China's forex reserves hit 1.8 trillion dollars: report

0 Comments | AFP, June, 2008

SHANGHAI (AFP) — China's foreign exchange reserves, by far the largest in the world, hit 1.80 trillion dollars at the end of May, state media reported Friday.

The figure represents an increase of 40.3 billion dollars for the month, down from 74.5 billion dollars recorded in the previous month, the China Securities Journal reported.

It said the main reason for the drop was due to a cut in the amount of speculative capital flowing into the country.

"There was a significant change in May regarding capital inflow -- the inflow of 'hot money' dipped sharply," it said, citing Ding Zhijie, economist with Beijing's University of International Business and Economics.

The foreign exchange regulator's efforts to strengthen supervision of cross-border capital...