By buying dollars and other currencies, China holds down the value of the yuan and makes its exports more competitive. IMF chief Dominique Strauss-Kahn does not like this and wants China to let the yuan appreciate, but China does not want to move too fast and hurt export businesses. China saves and exports, US spends and imports. This results in global imbalances.
Yuan in Chinese means round object or round coin. Difference between yuan and renminbi is like difference between Pounds and Sterling.
Last month South Korea's foreign reserves hit a record $290bn USD, the world's fifth. Who are the biggest? China, Japan, Russia and Taiwan. 80% of the world's largest FX reserve countries are in Asia. SK is one of the countries recovering fastest from the crisis. BoK estimates this year's growth to be 5.9%.
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