Foreign exchange reserves 'adequate'

Reduction of US Treasuries 'not strategic', says official; confidence in keeping yuan stable cited

China's foreign exchange reserves, which have dropped to about $3 trillion from a peak of nearly $4 trillion two years ago, are currently adequate, said a State Administration of Foreign Exchange official on Thursday.

China's reduction of US Treasury securities holdings, meanwhile, is not a strategic move, since US Treasury securities are the most important investment portfolio in the international market, said the official, who declined to be named.