August 12, 2007 (LPAC)--An unnamed official of the Bank of China again responded to Western media reports suggesting that it intended to dump its dollar reserves. In an interview with Xinhua News Agency, he stated that China's dollar assets "including American government bonds, are an important component of China's foreign exchange reserves." China currently holds $1.3 trillion in foreign exchange reserves, a large percentage of which are dollar assets.

The unnamed official emphasized that China is a "responsible investor in the international capital markets," and that "the close economic and trade relations between China and the United States play an important role in the stable development of the two countries economies and the world economy as well."