Hu Xiaolian, a vice governor of the People’s Bank of China, says China will continue to buy US treasuries, viewing the credit risk as low overall. The official said “investing in US treasuries, as an important part of our foreign exchange reserve management, will continue.”
Regarding the dollar Hu Xiaolian said that while research into a multi-polar global currency system could begin, the dollar still remained the key currency for trade, settlement, payments and pricing, and also dominated financial investment. The official said China will not by swayed by short-term volatility in currency markets.
