China on Monday joined a group of policy makers in expressing concern over a weakening dollar – the world’s main reserve currency. Wen Jiabao, the Chinese premier, told a business audience in Singapore that it was becoming difficult to manage China’s $1,430 billion foreign exchange reserves. China keeps the composition of its reserves a secret, but according to some analysts, probably two-thirds of its reserves are still in dollars. Dollar has dropped 16% this year against a basket of major currencies. Mr. Wen’s comments reflect the concern of the global community. Similar concerns had been expressed by members of the Group of 20 in its summit in South Africa and by the oil exporters’ group in the OPEC meeting in Riyadh. Zhou Xiaochuan, China’s central bank chief said in Beijing that a strong dollar would help to ensure an orderly resolution of the recent market instability caused by US mortgage-lending problems. The dollar has little changed over the past few days and had remained at around $1.4655 against euro and $2.0504 against the pound. Mr. Wen’s comments have fuelled speculations that Beijing is likely to reduce the proportion of its reserves held in the US currency. Source:Financial times Image:istockphoto