China's foreign exchange reserves, second largest in the world after Japan, have grown remarkably in recent years thanks to strong fund inflows and a burgeoning trade surplus.

Forex reserves hit a record 609.9 billion dollars in 2004, up from 403.3 billion dollars in 2003.

Thanks to its booming exports, China's 2005 trade surplus tripled to a record 101.9 billion dollars in 2005.

In an effort to play down jitters on international currency markets, China's central bank Friday reiterated it has no plan to sell down its US dollar holdings or use them to buy other assets such as oil.

China "has no plan to sell off its dollar assets, neither (have I) heard of a plan to buy oil using the foreign exchange reserves," the Shanghai Securities News quoted central bank chief Zhou Xiaochuan as saying.

On Wednesday, a central bank spokesman issued a similar statement as the dollar came under pressure following speculation that China might diversify its holdings to ensure their more effective management.