China’s Exchange Reserves Could Face Depreciation Risks

China on Friday offered a rare glimpse into its foreign exchange reserves, confirming that they are overwhelmingly allocated in dollars, while a central banker said the mountain of cash could face depreciation risks. Hu Xiaolian, a vice governor with the People’sBank of China, warned that depreciation loomed as a risk for foreign exchange reserves held by developing counties. The Chinese govt’s currency reserves consists of 65 percent in dollars, 26 percent in euros, 5 percent in pounds and 3 percent in yen. – Reuters