BEIJING - CHINA'S foreign reserves have risen to US$1.95 trillion (S$2.9 trillion), the central bank said on Tuesday, but their growth slowed sharply as trade weakened amid a global economic crisis.
The reserves grew by US$45 billion over the three months ending Dec 31, the bank said in a quarterly report.
China has built up its massive reserves as a flood of export revenues threatened to push up inflation, forcing the central bank to drain money from the economy through bond sales. But that influx of money has moderated in recent months as global economic turmoil hurt demand for Chinese exports.
China's exports fell by 2.8 in December, on top of a 2.2 decline in November, the first in seven years, according to the government.
The reserves rose by US$417.8 billion, or 27.3 per cent, over the course of 2008, the bank said. That meant the final quarter's increase of US$45 billion accounted for just 11 per cent of the total. -- AP
