Business
        

Money

PBOC official blames high trade surplus for inflation

Updated: 2011-02-28 10:22

By Qiang Xiaoji (chinadaily.com.cn)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

China's excessively large trade surplus is the source of inflation and multiple measures should be taken to deal with inflation, said Yi Gang. Yi, the vice-governor of the People's Bank of China (PBOC) and head of the State Administration of Foreign Exchange, made the comments at a forum held in Beijing on Saturday, the Beijing News reported Sunday.

Related readings:
PBOC official blames high trade surplus for inflation China boosts efforts to tackle trade surplus
PBOC official blames high trade surplus for inflation China's foreign trade jumps 44% in Jan
PBOC official blames high trade surplus for inflation China to double imports by 2015 to balance trade

Yi said that at the end of the 2010, China's foreign exchange reserves totaled $2.85 trillion, and the PBOC had to roll out approximately 20 trillion yuan ($3.04 trillion) to keep the exchange rate stable.

He said it is urgent to expand the domestic demand and reduce trade surplus during the 12th Five-Year Plan (2011-2015) period. China could reduce its trade surplus by increasing imports rather than simply cutting exports, he added.

E-paper

Lingua franca

Chinese are learning English on a scale never seen before and the business of teaching is booming.

Preview of the coming issue
Golden run ahead
Looking abroad

European Edition

Specials

NPC & CPPCC sessions

Lawmakers and political advisers gather in Beijing to discuss major issues.

Sentimental journey

Prince William and Kate Middleton returned to the place where they met and fell in love.

Rent your own island

Zhejiang Province charts plans to lease coastal islands for private investments

The green lantern
Adventures of Pierre
Inland interchange