China’s Foreign Currency Reserves at $818B

China’s foreign exchange reserves reached $818.9 billion at the end of 2005, up 34.3 percent year-on-year, Xinhua reported.

China’s foreign currency reserves have climbed steadily, up from $609.9 billion in 2004, and $403.3 billion in 2003, according to figures published by the central bank.

The country boasts the second largest foreign exchange reserves in the world, after Japan. The rise was credited to a burgeoning trade surplus and a strong inflow of cash as betting on a currency revaluation boosted holdings.

China’s trade surplus tripled to a record $101.9 billion in 2005.

Industry sources predicted that the State Administration of Foreign Exchange would face a tough task in managing the huge buildup in foreign exchange, Xinhua reported.