China foreign currency reserves
China is the world's largest nation in terms of foreign current reserves. It topped USD 1066.3 billion or USD 1 trillion for the first time at the end of 2006. China's reserves rose $819 billion at the end of 2005, an increase of 23%. The amount is more than double the $408.5 billion estimated by the Asian Development Bank as needed for the country to guard against external shocks.
This added pressure to the Chinese government to let Yuan appreciate faster. The Chinese government will face challenges in pushing for a stronger
Yuan because of the huge amount of trade surplus, foreign investment and speculative inflow that flooded China's economy trade with cash.
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