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BEIJING: China's foreign exchange reserves surged to a record US$2.399 trillion at the end of December, the central bank said on Friday.
The reserves, already the world's largest, grew 23.3 per cent from a year ago, the People's Bank of China said in a statement on its website.
The central bank had said previously its reserves were at US$2.27 trillion as of the end of September.
China's forex reserves have ballooned in recent years, fuelled by strong foreign investment, large trade surpluses and inflows of "hot money" - short-term speculative funds in search of quick profits.
The data marked an increase in forex reserves of US$453.1 billion from a year earlier, the bank said.
China's exports, a key driver of its forex reserve hoard, softened in 2009 but have since rebounded, according to government data released on Sunday.
China's customs bureau said the nation's exports surged 17.7 per cent in December to snap a 13-month falling streak.
Data out of Germany earlier in the month showed China overtook Europe's biggest economy in November to become the world's top exporting nation.
Foreign direct investment in China doubled year-on-year last month to US$12.1 billion, officials said on Friday.
China has invested a large portion of its vast reserves in US dollar assets, such as safe low-yielding US Treasury bonds, but amid the financial crisis Beijing has tried to diversify its investments to improve returns.
One way Beijing has been doing this is through its 200-billion-dollar sovereign wealth fund, China Investment Corp, which has been investing heavily in resources companies.
Trade-related data such as forex reserves have long been a source of friction with trading partners such as the United States.
Experts have said resurgence in Chinese trade will likely bring renewed pressure on Beijing to let its currency appreciate.
China's Western trading partners said Beijing keeps the yuan's value low to boost its exports. China has recently said it will not bow to foreign pressure to adjust its currency policy.
- AFP/sc
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