Forex reserves pose problems: PBOC official

The central bank will take positive measures to curb excess liquidity

BEIJING - China's high foreign exchange reserves are the major cause of excess liquidity, said Yi Gang, deputy governor of the People's Bank of China (PBOC) and head of the State Administration of Foreign Exchange.

He also said the government is confident of curbing liquidity and inflation, and that consumer prices are expected to rise at a slower pace in the second half of the year.