Money

China's returns on forex investments dropping

(Agencies)
Updated: 2011-02-28 10:04

China's returns on its foreign exchange investments are dropping because of the global interest rate environment and the prospects for improvement are not good, Bloomberg reported Saturday citing People's Bank of China vice-governor Yi Gang.

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Diversifying the nation's $2.85 trillion foreign exchange holdings into commodities is difficult because that would drive prices higher, hurting China as a major buyer of resources, said Yi, who is also head of the State Administration of Foreign Exchange.