BOAO, China, March 25 An advisor to China's
central bank said on Saturday that he believed the People's Bank
of China (PBOC) would want a smooth transition to holding less
foreign exchange reserves.
Fan Gang, director of the National Economic Research
Institute, said he believed the PBOC would not want $4 trillion
in reserves in the long run.
But neither would it want to go to $2 trillion "in a few
days", said Fan, who is also a member of the PBOC's Monetary
Fan was speaking at the Boao Forum for Asia in southern
China's Hainan province.
China's foreign exchange reserves rose for the first time in
eight months in February, poking above the $3 trillion mark.
The unexpected gain helped assuage fears that China would
engineer another sharp one-off devaluation of the yuan.
China's foreign exchange regulator has said reserves are
likely to stabilise gradually as pressures on capital outflows
(Reporting by Elias Glenn; Writing by Ryan Woo; Editing by