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Last Updated: Monday, 6 November 2006, 12:14 GMT
China reserves reach $1 trillion

China says its foreign exchange reserves have reached $1 trillion - a milestone in its economic development.

The huge wealth is a result of China's trade surplus, with the imbalance especially marked with the US.

The sum is the largest holding of foreign exchange reserves in the world and exceeds the annual amount of economic activity in most nations.

China's reserves have been growing at a rate of about $18bn each month and passed the landmark on Monday.

China's huge foreign exchange reserves have sparked concern among economists and policy-makers, who worry that the global imbalances could upset the world economy.

The US has been putting pressure on China to revalue its currency, the yuan, in order to reduce its trade surplus.

Last year China agreed to a limited float for the yuan.

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