24.04.2009 - Not quite so SAFE
From Economist.com: According to the official figures, China’s foreign reserves are $1.95 trillion. But Mr Setser reckons that the true figure is around $2.3 trillion if hidden reserves are included, such as those of the China Investment Corporation (CIC), the country’s sovereign-wealth fund, and the “other foreign assets” of the PBOC. Taking this wider measure of foreign-exchange reserves, and then adjusting for changes in the value of non-dollar reserves caused by swings in the dollar, Mr Setser reckons that China’s total reserves rose by around $40 billion in the first quarter, only one-fifth of their increase in the first quarter of 2008. On the face of it, this represents a big drop in China’s demand for foreign assets.....Full Article: Source
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