/IRBIS, October 13, 2010/ - Foreign exchange reserves of China, the world's largest, rose to a record level of $ 2.65 trillion at the end of September, according to Bloomberg today with reference to the People's Bank of China.

As indicated, foreign exchange reserves rose by about $ 194 billion in the third quarter. In the second quarter growth of foreign reserves was the lowest in 11 years - only $ 7.2 billion since the beginning of the year China's reserves grew by 16,5%.

Non deliverable forwards yuan grew by 0.1% to 6.4530 per dollar as of 15:00 local time. Yuan traded at 6.6732.

The weaknesses of the dollar, especially against the euro, are probably the main reason to increase its reserves, said Bloomberg, Stephen Green, economist at Standard Chartered Plc in Shanghai.

As indicated, the average prediction of economists about the size of foreign exchange reserves stood at $ 2.5 trillion.

Trade surplus and inflows of funds from foreign direct investment and so- called "hot money" have also led to the growth of reserves.

Issuance of new loans by Chinese banks in national currency in the past month increased by more than 595.5 billion yuan ($ 89 billion). The average forecast in a Bloomberg survey of economists in 1918 was 500 billion yuan.

[2010-10-13]