China fears depreciation of $2.45 trillion of reserves still heavy in dollars

The Chinese Government holds the largest stockpile of currency reserves at $2.45 trillion (£1.59 trillion), with 65pc held in dollars, 26pc in euros, 5pc in pounds, and 3pc in yen.
The report was published in official newspaper the China Securities Journal and confirmed analysts' estimates that about two-thirds of the reserves are invested in dollars.

China has signalled a shift away from dollar assets in recent months, in a bid to diversify. It has sharply increased its net purchases of Japanese debt, and has raised its holdings of South Korean bonds.
The latest data also shows it has moderately reduced its holdings of US Treasuries, to $843.7bn in June from $894.8bn at the beginning of the year.
China however remains the biggest single holder of US Government bonds, and the China Securities Journal suggested that further significant diversification away from dollar assets in the short-term was unlikely.