China holds a massive amount of foreign exchange reserves.As of 1010 they held nearly $2,500 billion.This huge foreign exchange reserve should allow China to:

Question

Quizplus · Accepted Answer

With a massive amount of foreign exchange reserves, China can use them to manage the value of the Chinese yuan in order to maintain competitiveness in world markets. This, in turn, allows them to maintain a relatively stable managed fixed exchange rate for the yuan for years to come. Additionally, having such huge foreign exchange reserves allows China to remain a very important player in world trade for at least the next several years.

China Holds a Massive Amount of Foreign Exchange Reserves