G7 mulls better use of oil money, China reserves

Saudi Arabia, United Arab Emirates, China, and Russia discussed with G7 nations how surpluses derived from oil sales should be invested and Beijing’s plans to more actively manage its foreign reserves, a senior Japanese finance ministry official said late on Friday.

China’s vice finance minister and deputy central banker also told participants about the country’s plans to manage its $1.2 trillion foreign exchange reserves, the world’s largest, the official said.
When asked to clarify further, the official said China did not provide more details.

“They did not go into discussions on whether they will keep the dollar-denominated assets in dollars or whether they would shift them out of the dollar into the euro,” he added.

Chinese representatives did not comment on the size of such reserve management plans or which foreign currencies will be involved, he added.

China is setting up a new investment agency to seek higher returns on its foreign currency reserves as it explores new ways of using the reserves.

Reuters