China's forex reserves rise to $819 bn

China's foreign exchange reserves grew nearly $50 billion in the last quarter of 2005 to reach $819 billion, making it likely China will exceed Japan's reserves by the end of the year.

The increase of $209 billion in China's reserves last year, slightly higher than the $207 billion rise in 2004, came as a soaring trade surplus offset a decline in inflows of speculative capital from investors betting on a revaluation of the Renminbi.

"It's almost certain that China's trade surplus will remain at

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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