Zhang Monan, a researcher at the State Information Center, has urged China to lower its dollar-denominated assets to safeguard FX reserves, The Wall Street Journal reports. She said that U.S. government debt and the dollar have lost their long-term stability. She suggested that China should create a FX stabilization fund that only intervenes in FX markets when the Yuan exchange rate goes beyond certain target ranges, similar to how Japan manages the yen exchange rate. The proposed fund will be managed by the Ministry of Finance, but administered by the central bank.

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