The current ratio is appropriate. I expect it will decline further in the future. Last year's fast growth in fiscal revenue enabled the central government to cut the deficit.
The government should take measures to lower house prices.
The reserves are of significant importance to upgrade the China image in the international economic arena, strengthen the nation's macro-control capabilities and guard against financial risks.
China's foreign exchange reserve hit 818.9 billion dollars at the end of last year but what China really needs should be no more than 250 billion dollars.