While our liquid reserves are diversified across currencies, more than half is held in US dollars, because of the greater liquidity of US-dollar markets and since potential foreign currency needs are most likely to be in US dollars.
The effects of this transition – involving the internationalisation of the RMB and the opening up of the capital account – could ultimately be as wideranging as were the effects of China’s ascension to the World Trade Organisation. Managed well, this transition can be a win-win for both China and the rest of the world. Thank you.