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Friday, October 06, 2006

China's SAFE Says It Will Maintain Large FX Surplus In H2

China's Safe is being quoted on MNI as stating that it will maintain a large FX surplus in H2. Its current surplus stands at USD 91.6 billion. China will push Yuan capital account convertibility in H2 and further diversify forex hedging tools. China noted a possible risk of inflationary pressure in H2.

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