China's central bank announced that the country's foreign exchange reserve surged to 711 billion US dollars by the end of June, representing a year-on-year increase of 51.1 percent.

In a report released on Thursday, the Chinese People's Bank said the foreign exchange reserve increased by 101 billion US dollars in the first six months of this year, 33.7 billion dollars more than the same period of last year.

In the January-June period, the Chinese currency, yuan, was pegged to the US dollar at 8.2765, remaining the same level as that at the end of last year.

By the end of 2004, China's foreign exchange reserves reached 609.9 billion dollars.

Experts said that China's huge foreign exchange reserve is a great challenge to the country's macro-economic control policy and to the management of the country's reserve assets.

Source: Xinhua