China Exploring Ways to Use Forex Reserves to Buy Oil – Report

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China is exploring ways to use some of its huge foreign exchange reserves to buy imported oil, the Shanghai Securities News reported, citing an unidentified source.

The newspaper said the plan, which was first proposed as early as 2000, would reach the twin objectives of making better use of the nation’s foreign exchange and ensuring vital oil supplies.

The paper quoted Li Yang, a senior economist at the Chinese Academy of Social Sciences and a former member of the monetary policy committee under the central bank, as saying the plan to use foreign exchange reserves to build up strategic oil reserves is reasonable.
Forbes