Zhou Xiaochuan: Reducing US Treasuries is not a worry about the dollar

The figure is Zhou Xiaochuan, governor of the People's Bank.　　(Photo source: Sina Finance) Click here to view all financial news pictures Zhou Xiaochuan: GDP growth is expected to be slightly higher in the two quarter. According to the Wall Street Journal, central bank governor Zhou Xiaochuan said in Sunday that China's GDP growth in the second quarter of this year was likely to be slightly higher than the first quarter.　　In a gap with the bank's meeting in Basel, Mr Zhou said the market was widely expected to have a slightly better second-quarter GDP performance in the first quarter.　　China's GDP rose 6.1% in the first quarter from a year earlier, the smallest increase in nearly 20 years.　　An economist at the National Bureau of Statistics said earlier this month that he expects China's GDP growth to rise sharply to nearly 8% in the second quarter.　　Mr Zhou denied that the central bank's reduction of U.S. Treasury debt was a concern over the dollar's movements.　　China, the country's largest holder of US Treasuries, reduced its holdings of US Treasuries from $767.9 billion trillion to $763.5 billion trillion in April from March, according to the US Treasury (U.s.treasury).　　In the China Financial Stability Report (2009), released in Friday, the central bank said China would push ahead with reforms in the international monetary system to enhance its diversity and rationality and reduce its over-reliance on the current reserve currency.　　The report reiterates its call for the creation of a new international reserve currency based on the Special Drawing Rights (SDR) used between the International Monetary Fund (IMF) and its member States. Mr Zhou said China's policy of foreign exchange reserves remained highly stable and consistent, in other words, to focus on liquidity, security and profitability.　　He also said China would not suddenly change its foreign exchange reserve policy.　　By the end of March, China's foreign exchange reserves reached $1.95 trillion trillion, the world's largest. Mr Zhou said he had met with Merelles, the Brazilian central bank governor, at the sidelines of the Basel meeting, and that the two sides had held consultations on the replacement of the dollar in some cases with their own currency, Meirelles.　　This underlines China's determination to reduce its reliance on the dollar. Mr. Zhou told reporters that he and Merelles discussed the possibility of Brazil's president, Luiz Inácio Lula da Silva (Luiz Inacio Lula DaSilva), to discuss with Chinese President Hu Jintao the likelihood of gradual use of its currency for partial trade settlement and project Investment, So he thinks that's the main problem.　　He also said that the two sides do not necessarily use currency swaps. Lula and Hu Jintao discussed the issue of using the renminbi and the Brazilian real to replace the dollar as the bilateral trade settlement currency for the first time at the group Of20 Summit held in London in April this year. During Lula's visit to China in May this year, the two leaders again held talks on the issue.