The Chinese embassy in the UK held the forum of "Foreign Exchange Reserve and Financial Security" on 24 May 2007. Representatives from Chinese financial institutions based in London including the People's Bank of China, Bank of China, Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications were present.
The participants analyzed and discussed the current situation, existing problems and direction of reform of foreign exchange reserve in China. They mentioned that Chinese foreign exchange reserve played an important role in stabilizing the Asian economy during the Asian financial crisis in 1997. The sharp increase of foreign exchange reserve in recent years was owing to some particular reasons and historical background. The gradual integration of international financial market has a bearing on China. The development of the situation and the expansion of foreign exchange reserve of China gave rise to some new problems and challenges, thus the questions of how to safeguard the security of foreign exchange reserve, realize value-sustained and value-added and ease the outside pressure are vital to realize continued economic development and long-term social stability. They suggested to further reform the foreign exchange reserve management system, for example, to realize multi-homing and foreign exchange held by the people, promote diversification of reserve currency structure and investment channels, improve the foreign exchange reserve management and perfect the management system and legal basis. Meanwhile, they also considered the reform needs to be well-prepared and carried out steadily.
Ambassador Fu Ying thanked the participants for speaking out freely their good ideas, and hoped to further exchange views with them in the future.