Shifts in China’s FX reserves have to be slow-IMF

HONG KONG, July 9 (BestGrowthStock) – Any changes to the makeup of
China’s massive pile of foreign exchange reserves will have to be
gradual so as not to cause volatility in world markets, the
International Monetary Fund’s chief economist said.

Shifts in the composition of the Chinese central bank’s more
than $2 trillion portfolio would have to be “very, very slow”,
Olivier Blanchard, the IMF’s economic counsellor and director of
research, said at an Asia Society event in Hong Kong on Friday.

China bought a record $7.9 billion in short-term Japanese
debt in May, a surge that some analysts said was a sign of
foreign reserves diversification into the yen and away from the
euro and the dollar. [ID:nTOE66705G]
(Reporting by James Pomfret, writing by Kevin Plumberg; Editing
by Chris Lewis)

Shifts in China’s FX reserves have to be slow-IMF