Percent: Exchange Reserves

percent: From 2005 to 2014, the average annual yield of China's foreign exchange reserves was 3.68 percent, according to Global Times China. Yet, the portion of US dollar-denominated assets in China's reserves portfolio fell from 79 percent in 1995 to 58 percent in 2014, while the portion of non-dollar assets rose from 21 percent in 1995 to 42 percent in 2014. As of the end of June, China's foreign exchange reserves reached nearly 3.12 trillion. Apparently, China's foreign exchange reserves have shown signs of de-dollarization, a phenomenon that indicates a shift from US dollar-based assets. Theoretically speaking, the diversification of foreign exchange reserves helps to reduce exchange rate risk. Although the diversification of currency composition may be conducive to asset preservation and risk avoidance from the perspective of investment and trade, we believe the de-dollarization of foreign exchange reserves may only cause greater risks in the context of intensified trade frictions and global currency turmoil. (news.financializer.com). As reported in the news.