China's foreign-exchange regulator said the country had not made any major changes to the strategy for managing its foreign-exchange reserves and will continue to push ahead liberalisation of its capital account. Wang Xiaoyi, the deputy head of the State Administration of Foreign Exchange, said the regulator would also strengthen monitoring of cross-border capital flows. Wang's statement yesterday at an economic forum in Beijing came amid a backdrop of louder calls from some officials and economists for greater diversification in light of a weakening US dollar. The financial markets are watching whether Beijing will dump dollars. China holds more than US$2 trillion in foreign reserves and is also the world's largest holder of US government debt, with US$763.5 billion of Treasury bonds. 'The composition [of China's foreign-exchange reserves] remains as it was before. There is no major change,' Wang said. 'We are not making any big adjustments in direction in the management of foreign reserves. Our operations are still as normal as before, following the existing forex reserves management policy goal.' In a speech at the forum, Wang said the regulator would continue to liberalise the capital account, but he reiterated that the regulator will step up monitoring of capital flows and risk controls. As the US dollar has fallen in recent months, some government officials and economists have asked the regulator to diversify the country's foreign-exchange reserves, instead of relying on dollar assets. In March, Premier Wen Jiabao said that he was 'worried' about the safety of the nation's US investments. China is worried massive US borrowing to support stimulus spending could eventually lead to inflation, hurting the value of China's holdings. Wang acknowledged recent declines in the greenback, saying that the 'depreciation of the US dollar was a long-term trend, not a short worry'. The weak dollar has complicated China's monetary policy as the government has apparently re-pegged its currency to the greenback to help its sluggish exports because of a slump in global demand since the middle of last year. China allowed the yuan to rise 21 per cent against the dollar between July 2005 and July 2008. Beijing has faced mounting international calls to let the yuan appreciate on the grounds that it is undervalued and stoking imbalances with other main trade partners during summits with US President Barack Obama last month and with European leaders early this week. Meanwhile, a commentary in the People's Daily vented Chinese frustrations over the weak dollar yesterday, saying the slumping greenback was hurting the world economy. The sluggish dollar was harming other countries' economic recovery, forcing them to choose between squeezed exports and inflation risks, said Zeng Gang, an economist with the Chinese Academy of Social Sciences. Zeng said the weak dollar was a particularly 'heavy blow' to other countries' exports. The comments echoed those made last month by Chinese banking regulator Liu Mingkang, who said that ultra-low US interest rates and a weak dollar were a 'new systemic risk' for the global recovery.