People’s Bank of China (PBOC) is planning to launch investment funds to diversify its foreign-exchange reserves, The Wall Street Journal reports. The proposed funds may invest in sectors, such as energy and precious metals.
The bank may also unveil a foreign-exchange stabilization fund, composed of gold, forex and domestic currency, to intervene in the forex market. The forex stabilization fund will allow PBOC to buy foreign currency directly in the market without having to print new currency notes.
Click here for the story from The Wall Street Journal.
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