China’s Foreign-Exchange Reserves Top $2 Trillion

China’s foreign-exchange reserves topped $2 trillion for the first time, highlighting the difficulty the government faces in finding places to invest the world’s largest holdings.

The reserves rose a record $178 billion in the second quarter to $2.132 trillion, the People’s Bank of China said today on its Web site. That compares with a $7.7 billion gain in the previous three months.

Central bank Governor Zhou Xiaochuan ruled out any sudden change in the management of the reserves last month after proposing that governments investigate setting up a supranational currency. Premier Wen Jiabao is concerned that China’s $763.5 billion of Treasury holdings may fall in value as the U.S. sells record amounts of debt to fund stimulus spending. baca selengkapnya